Which of the following is not an objective of a financial audit?
A. Detection of fraud
B. Ensuring absolute accuracy of books
C. Detection of errors
D. Expressing an opinion on financial statements
Answer: Option B
Solution (By JKSSB Mock Tests)
Audit provides reasonable assurance, not absolute accuracy. The objective is to detect material misstatements due to fraud or error and express an opinion.
Under Ind AS 115, if an entity receives a non-refundable upfront fee and has no further performance obligations, when should the revenue be recognized?
A.Over the expected life of the customer relationship
B.Amortized over the contractual period of the agreement
C.At the point in time when the entity transfers control of the good/service
Explanation:
Ind AS 115 states that if an upfront fee relates to a good or service and there are no further performance obligations, revenue is recognized when control of that good or service is transferred.
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