Auditing is compulsory for____________?
Correct answer: C. Joint stock Companies
- A. Small scale business
- B. Partnership firms
- C. Joint stock Companies
- D. Proprietary Concerns
Explanation
Joint stock companies are generally subject to statutory audit because they operate through capital contributed by shareholders and must provide independently examined accounts. Small businesses and proprietorships are not universally subject to compulsory audit.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
Concealment of shortage by delaying the recording of cash receipts is known as_____________?
The fundamental objective of the audit of a company is to_____________?
The concept of stewardship means that a company's directors________________?
Process of verifying the documentary evidences of transactions are known as___________?
An auditor is like a_______________?
The term 'Audit' is derived from a Latin word "audire" which means___________?