Can anybody give answers for this statements

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 Auditing :
6. State with reasons whether the following statements are True/False (any six)
i) Auditing, in India can be traced back to the days of Vedas .
ii) The concept of evidence is fundamental to auditing.
iii) Test check approach and random sampling approach are same
iv) By obtaining inventory valuation certificate from management, the auditor is
no longer responsible for verifying Closing Stock.
v) Indirect expenditure relating to construction of a project should not be capitalized.
vi) National Advisory committee on Accounting Standards may be constituted by
Central Government u/s 210A.
vii) An Auditor is always appointed by passing a special resolution to this effect.
viii) When separate Branch Auditors are appointed, the company auditor may not
visit the branches.

CA Pattanayak

CA Pattanayak (Expert)
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31 January 2011 . State with reasons whether the following statements are True/False (any six)

i) Auditing, in India can be traced back to the days of Vedas .True

ii) The concept of evidence is fundamental to auditing. True

iii) Test check approach and random sampling approach are same . TRUE

iv) By obtaining inventory valuation certificate from management, the auditor is
no longer responsible for verifying Closing Stock. FALSE. He has to believe that the facts given by management is acceptable subject to backed by supporting papers

v) Indirect expenditure relating to construction of a project should not be capitalized. False. Any expenses related to a project should be capitalised

vi) National Advisory committee on Accounting Standards may be constituted by
Central Government u/s 210A.

vii) An Auditor is always appointed by passing a special resolution to this effect. False. Ordinary resolution

viii) When separate Branch Auditors are appointed, the company auditor may not
visit the branches. False. Company auditor has every right to visit the branch