[Solved] Which of the following statements is correct?

Which of the following statements is correct?

a) Valuation is a part of verification

b) Verification is a part of valuation

c) Valuation has nothing to do with verification

d) Auditor is a valuer

Answer: (b) Valuation is a part of verification. Verification proves the existence, ownership and title of assets. Valuation certifies the correct value of asset. Vouching is done after original entry in the books of accounts. Verification and valuation are done at the end of the financial year.

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
  8. Effective internal check system reduces
  9. Internal check is a part of
  10. The objective of internal audit is

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