Balance sheet does not include -verification of assets and liabilitiesexamination of adjusting and closing entriesroutine checksvouching of income and expense accounts related to assets and liabilities

Question

Toppr Admin · Accepted Answer

Yearly statutory audit is termed as balance sheet audit. Balance Sheet Audit is done with a view to review all the items of Balance Sheet which includes all the assets and liabilities. This includes physical verification and valuation of assets too. If require, Income and expenses account also can be verified.
Balance sheet audit does not includes routine checks.

Receipt and Payment Account for the year ending December 31, 2006
Receipts		Amount Rs	Payments	Amount Rs
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
2005	2,000		Salary
2006	22,000	24,000	2005	1,000
Entrance fees		2,800	2006	4,000
Locker rent		1,000	Newspapers	700
Life membership fee		1,200	Sundry expenses	1,000
Government grant		11,000	Defence bonds	18,000
			Land	20,000
			Closing cash balance	2,500
		52,000		52,000

Balance Sheet for the year ending December 31, 2005
Liabilities	Amount Rs	Assets	Amount Rs
Advance locker rent	200	Cash in hand	12,000
Subscription Received in Advance	1,000	Outstanding Expenses	3,000
Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

Balance sheet does not include ___________.verification of assets and liabilitiesexamination of adjusting and closing entriesroutine checksvouching of income and expense accounts related to assets and liabilities

Balance sheet does not include ___________.
verification of assets and liabilities
examination of adjusting and closing entries
routine checks
vouching of income and expense accounts related to assets and liabilities