The primary objective of a statutory financial audit is to: MCQ with Answer and Explanation

The primary objective of a statutory financial audit is to:
A. Guarantee the future viability of the company
B. Detect all frauds and errors
C. Express an independent opinion on the financial statements
D. Prepare the financial statements for management
Answer: Option C
Solution (By JKSSB Mock Tests)
The main objective is to form and express an independent opinion on whether the financial statements present a true and fair view.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
In the context of single entry system, 'Net Worth' means:
A. Excess of assets over liabilities
B. Total liabilities
C. Total assets
D. Cash in hand

Correct Answer: Option A


Explanation:
Net worth = Total assets - Total liabilities, representing owner's equity.

Question #2
In the context of the Indian Financial System, the 'National Housing Bank' (NHB) was established as a wholly owned subsidiary of which institution?
A. Securities and Exchange Board of India
B. State Bank of India
C. Reserve Bank of India
D. Ministry of Finance

Correct Answer: Option C


Explanation:
The National Housing Bank (NHB) was set up in 1988 as a wholly owned subsidiary of the Reserve Bank of India (RBI) to regulate and promote housing finance institutions. (Note: It was later transferred to the central government in 2019, but historically it was an RBI subsidiary).

Question #3
A business paid ₹12,000 as insurance premium for the year ending 31st March 2025, out of which ₹3,000 relates to next year. Insurance expense for current year is:
A. ₹12,000
B. ₹9,000
C. ₹15,000
D. ₹3,000

Correct Answer: Option B


Explanation:
Prepaid ₹3,000, so current year expense = 12,000 - 3,000 = ₹9,000.