Question

Which one of the following statements regarding the internal check system is correct?

Its purpose is to __________.

• A. have an accurate record of all the business transactions
• B. know an accounting method followed in the business
• C. plan for future audit works
• D. ascertain the profit, earning capacity of the business

Answer 1

The correct option is B know an accounting method followed in the business

Internal check is a part of internal control system. While doing the internal check, auditor must ensure to know the detailed process, procedures and accounting method followed by the business.