Question

The auditor has to report to the ________ for conducting audit whether the financial statements reveals true and fair view of the state of affairs and of the profit or loss earned during the period by the organization.

• A. managing director
• B. authority appointing him
• C. stock exchange
• D. register of companies

Answer 1

Answer: (B)

authority appointing him

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.

To conduct the audit of an organization, auditor has right to access books, accounts, vouchers and ask for all the information and explanation wherever required. Audit report has to be signed by the auditor only.

The auditor has to report to the management on the true and fair view of financial statements which includes profit & loss account and balance sheet of the organization.