New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    The main object of the audit of the cash book may be ________.

    A to verify the assets and liabilities. Correct Answer Incorrect Answer
    B to know that all receipts and payments have been properly recorded. Correct Answer Incorrect Answer
    C to check the internal control system in business. Correct Answer Incorrect Answer
    D to check the bank balance. Correct Answer Incorrect Answer

    Solution

    The main objective of auditing the cash book is to ensure that all receipts and payments have been accurately and completely recorded. Auditing the cash book involves verifying the accuracy and completeness of cash transactions, ensuring that no errors or omissions have occurred in recording the financial activities related to cash inflows and outflows. This helps in establishing the reliability of the financial records and the internal control system in place for cash management.

    Practice Next