Auditing and EthicsMCQQuestion 6209 of 213
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2. While conducting an audit against provision of funds, the statutory auditors, M/s Rama & Associates must check

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

✅ Option A — that each item of expenditure is covered by a sanction either general or special of a competent authority.

All Options:

  • Athat each item of expenditure is covered by a sanction either general or special of a competent authority. ✓
  • Bthat the expenditure incurred has been on the purpose for which the grant and appropriation has been provided and the amount of such expenditure does not exceed the appropriation made.
  • Cthat the expenditure conforms to the relevant provision of the constitution and of the laws and rules made thereunder.
  • Dthat the expenditure is in accordance with the financial rules, regulations and orders issued by the competent authority. (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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