Auditing and EthicsMCQQuestion 6197 of 213
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11. ABC Traders offered its warehouse as security for the loan. HFC Bank created a charge on the warehouse. Which form of security has been created and whether bank is required to get stock audit done of cash credit account of ABC Traders ?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Security created is Pledge and bank is required to get stock audit done of cash credit account of ABC Traders.

All Options:

  • ASecurity created is Pledge and bank is required to get stock audit done of cash credit account of ABC Traders. ✓
  • BSecurity created is Mortgage and bank is required to get stock audit done of cash credit account of ABC Traders.
  • CSecurity created is Pledge and bank is not mandatorily required to get stock audit done of cash credit account of ABC Traders.
  • DSecurity created is Mortgage and bank is not mandatorily required to get stock audit done of cash credit account of ABC Traders. (2 Marks)

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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