____________ is a systematic examination of the books and records or a business?

Correct answer: A. Auditing

  • A. Auditing
  • B. Vouching
  • C. Verification
  • D. Checking

Explanation

Auditing is a systematic examination of an entity's books, records and supporting evidence, followed by an independent conclusion. Vouching and verification are important parts of an audit, not its complete definition.

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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.

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162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.

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