The object of internal check is to
a) Control wastage of resources
b) Prevent errors and frauds
c) Verify the cash receipts and payments
d) Facilitate quick decision by the management
Answer: (b) The object of internal check is to prevent errors and frauds. To safeguard businesses against carelessness, inefficiency, and fraud. To ensure and generate adequate and trustworthy accounting information. To maintain morale among employees. To reduce the likelihood of errors and fraud and to detect them quickly if they occur.
More MCQ and Answers on Auditing
- Which among the following is not a right of company auditors.
- Test checking is done when there is an effective system of _________
- Test checking means
- Audit working papers are
- Current audit file consists of
- ____ begins where accounting ends.
- ________audit is compulsory for joint stock companies.
- Treating revenue expenditure as capital expenditure is an example of error of
- Financial statements are prepared by
- Preliminary expanses not written off are treated as