[Solved] Internal check is essential for

Internal check is essential for

a) Petty traders

b) Cash transactions in a large concern

c) A concern using automatic equipment

d) None of the above

Answer: (b) Internal check is essential for cash transactions in large concerns. Employees have a tendency to misappropriate funds in an organization, so there should be a thorough internal check mechanism in place for cash transactions.

More MCQ and Answers on Auditing

  1. Management audit means
  2. Systems audit implies
  3. Internal audit means
  4. Internal audit is
  5. Detection of errors and fraud in audit is  
  6. Internal auditor is appointed and removed by the  
  7. The object of internal check is to
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