2023 · Q28
Which one of the following aspects is not covered in audit?
General Accounting Principles, Auditing and InsuranceAuditing
- AExamination of the system of accounting and internal control
- BPreparation of books of accounts
- CReporting to the appropriate person/body
- DVerification of the authenticity and validity of transactions
Explanation
An audit examines the accounting system and internal control, verifies the authenticity of transactions, and reports findings, but preparation of the books is management's responsibility; an auditor who prepared them would compromise independence. Hence B.