Window dressing implies_______________?
Correct answer: D. Over Valuation of assets
- A. Curtailment of expenses
- B. Checking of Wastages
- C. Under valuation of assets
- D. Over Valuation of assets
Explanation
Window dressing is the deliberate presentation of accounts to make financial performance or position appear better than it really is, commonly by overstating assets or understating liabilities. Overvaluation of assets is therefore a typical example.
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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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