Question

The auditor is generally expected to carry out the following in a particular serial:
1. Verification of Assets and Liabilities
2. Vouching of transactions
3. Checking of valuation of Assets and Liabilities.
Select the correct answer from the codes given below.

• A. 1, 3 and 2
• B. 3, 2 and 1
• C. 2, 1 and 3
• D. 3, 1 and 2

Answer 1

The correct option is D 3, 1 and 2

It is the responsibility of the auditor to verify all the business transaction while conducting the annual audit or balance sheet audit.

Auditor needs to verify the transactions based on the importance of the transactions. This need to be carried out as:

3. By checking the valuation of assets and liabilities with the records available.

1. By physically verifying the assets and liabilities.

2. Vouching of all the transactions.