Question

Balance sheet audit is useful when ___________.

• A. the concern is a big one
• B. the concern is a small one
• C. internal check is weak
• D. all of the above

Answer 1

The correct option is A the concern is a big one

Audit is performed to determine that whether the business is maintaining the books of accounts as per the required provisions of various laws based on the generally accepted accounting principles.

Balance Sheet audit is listing of all the assets and liabilities of the company on a particular date. Every item of balance sheet has to be scrutinized in detail.

Balance Sheet audit is useful only when the size of the organization is big one.