Question

Auditing can be defined as ____________.

• A. preparation of books of accounts
• B. examination of books of accounts
• C. rendering expert advice management regarding accounting matters.
• D. none of the above

Answer 1

Answer: (B)

examination of books of accounts

Auditing is defined as the process of reviewing and checking the books of account along with the physically available documentary evidence.

Auditing is done to ensure that each of the department is following the set processes and procedures of accounting and financial statements are showing the true and fair view of the books of account.