The 'Management Letter' in audit is: MCQ with Answer and Explanation

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The 'Management Letter' in audit is:

A. Communication to management on internal control weaknesses and other observations

B. Tax letter

C. The audit report

D. Engagement letter

Answer: Option A

Solution (By JKSSB Mock Tests)

Management letter (letter of weakness) suggests improvements in internal controls.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Finance Bill' is presented in Parliament along with:

A. Economic Survey

B. Railway budget

C. Monetary policy

D. Annual Financial Statement (Budget)

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Correct Answer: Option D

Explanation:
Finance Bill is presented to give effect to tax proposals of the budget.

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Question #2

Input Tax Credit on motor vehicles is blocked under GST except when used for:

A. Further supply of vehicles or transportation of goods/passengers

B. All cases

C. Personal use

D. Office commuting

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Correct Answer: Option A

Explanation:
ITC on motor vehicles is generally blocked, but allowed if used for specified purposes like transport services, further supply, etc.

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Question #3

The accounting standard AS-9 primarily deals with:

A. Inventory Valuation

B. Revenue Recognition

C. Accounting for Fixed Assets

D. Depreciation Accounting

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Correct Answer: Option B

Explanation:
AS-9 issued by ICAI lays down the conditions and guidelines for recognizing revenue arising from ordinary business activities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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