Window dressing implies
a) Curtailment of expenses
b) Checking wastages
c) Under- valuation of assets
d) Over- valuation of assets
Answer: (d) Window dressing implies over- valuation of assets. Window dressing is a strategy used by mutual fund and other portfolio managers to improve the appearance of a fund’s performance before presenting it to clients or shareholders. To window dress, the fund manager sells stocks with large losses and purchases high-flying stocks near the end of the quarter or year.
More MCQ and Answers on Auditing
- Management audit means
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- Internal audit is
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- Internal auditor is appointed and removed by the
- The object of internal check is to
- Effective internal check system reduces
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