Question

Auditor has to ensure that all the statutory requirements has been complied by the entity like provisions of ______________.

• A. Income-tax Act
• B. Companies Act
• C. Other applicable acts
• D. All of the above

Answer 1

The correct option is D All of the above

It is the auditors responsibility to verify all the business transactions along with the verification of documentary evidence available. The main object of audit is to detect and prevent the frauds and provide the opinion on financial statements to ensure that it gives true and fair view of the accounts.

Auditor has to ensure that organization is complying the various provisions of applicable laws e.g. Income Tax Act, Companies Act, PF Act, laws related to labor compliance etc.