Question

The main object of audit of accounts of a partnership firm is to __________.

• A. meet the statutory requirements
• B. increase the profits
• C. increase the goodwill
• D. detect errors and frauds

Answer 1

Answer: (D)

detect errors and frauds

As per the Income Tax Act, Tax Audit is compulsory for the partnership firm if the turnover exceeds Rs. 1 crore in financial year.

The main object of the audit of accounts of partnership is to ensure the verification of books of account to detect frauds and errors.