____ is the verification of books of accounts from Income tax point of view.

____ is the verification of books of accounts from Income tax point of view.

a) Cost audit

b) Tax audit

c) Management audit

d) None of these

Answer: (b) Tax audit is the verification of books of accounts from Income tax point of view. Any person involved in Business, whose annual gross turnover/receipts exceeds Rs. 1 crore should get his accounts audited. Any person involved in Profession, whose gross receipts/turnover exceeds Rs. 50 lakhs should get their accounts audited.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
  2. A company auditor can be removed before expiry of his term by
  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
  9. Which of the following percentage of nominal amount of shares should be received with application
  10. While checking allotment, auditor should see that amount

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