Do you agree with the statement 'Accounting is a necessity while auditing is a luxury for a business enterprise'? Give reasons for your opinion and examine critically the role of auditing in the efficient, honest, and economical conduct of a business concern.
What is Vouching? How would you vouch the cash book? Explain.
What are the rights and duties of a company auditor? Explain.
Elucidate the statement: "Accounting starts when book-keeping ends and auditing starts when accounting ends." Explain the advantages that accrue from audit.
Explain the terms "True and Fair" given by an auditor in his audit report.
Distinguish between valuation and verification of assets.
Accountancy begins where book-keeping ends and auditing begins where accountancy ends. Elucidate this statement and discuss the objectives and advantages of auditing.
In the process of audit of accounts of a company you come to know that wages paid for installation of new machinery 18,000 have been debited in wages account and credited in bank account. Is this treatment correct to be allowed by the auditor?