[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.

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