Verification in Auditing - 2

Verification is

• Confirmation or proving the truth about the Assets and Liabilities appearing in the Balance Sheet

• Confirmation or proving the truth about the Assets and Liabilities with the Industry

• Confirmation or proving the truth about the Assets and Liabilities within the boundaries of the country

• None of the Options

MATCH THE FOLLOWING

TERMS:

1. Ownership
2. Checking of Charges
3. Proper Disclosure
4. Valuation

MEANINGS:

A. Determining the Real Value of the Asset or Liabilities in the balance sheet

B.Verifies whether the Asset or Liabilities belongs to the Client or not.

C. Each of the asset and liability is properly shown in the financial statements as per law

D. Examining that assets of the firm are free from mortgage and pledge.

• 1-A, 2-A, 3-C, 4-D

• 1-D, 2-C, 3-B, 4-A

• 1-B, 2-D, 3-C, 4-A

• 1-B, 2-C, 3-A, 4-D

Vouching is a broader concept than Verification

• True

• False

Verification examines the Transaction

• At the POINT OF ORIGIN

• At the FINAL BALANCE

ICAI Stands for

• The Indian Chartered Accountants Institute

• The Institute of Chartered Accountants of India

• The Institution of Chartered Accountants in India

• The Indian Chief Accountant Institution

CARO Stands for

• Chief Officer Review Order

• Chartered Accountant Report Order

• Companies Auditor's Report Order

Patents & Copyrights are one and the same

• True

• False

A document, which certifies that the holder is the creditor of the company to the limit of a number.

• Debenture Certificate

• Share Certificate

• Bond Certificate

• Government Loan Certificate

A method of inventory management that records real-time transactions of received or sold stock.

• Perpetual Inventory

• Periodic Inventory

In positive method of confirmation, the debtor has to confirm the balance direct to the auditor whether he agrees or not.

• True

• False