Which of the following is not a purpose of financial audit? MCQ with Answer and Explanation

Question
Which of the following is not a purpose of financial audit?
A. Preparing financial statements
B. Ensuring compliance with laws
C. Detecting fraud and error
D. Expressing opinion on true and fair view
Answer: Option A
Solution (By JKSSB Mock Tests)
Preparation of financial statements is management's responsibility. Auditor expresses opinion on them.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
S1: The Profit and Loss Account shows the financial position of the business. S2: The Balance Sheet shows the financial position of the business. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. Both S1 and S2
D. S2 only
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Correct Answer: Option D

Explanation:
The Profit and Loss Account shows the financial performance (profit or loss) over a period. The Balance Sheet shows the financial position (assets and liabilities) at a specific point in time.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Insolvency and Bankruptcy Code' (IBC) 2016 provides:
A. Audit procedures
B. Time-bound resolution of insolvency and bankruptcy
C. For winding up of companies only
D. Tax collection
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Correct Answer: Option B

Explanation:
IBC aims at resolution in a time-bound manner, maximising asset value.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Taxpayer's Charter' in India is a part of:
A. GST Act
B. Finance Act, 2020
C. Income Tax Act
D. Companies Act
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Correct Answer: Option B

Explanation:
Taxpayer's Charter was introduced as part of the Finance Act, 2020, outlining rights and obligations of taxpayers.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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