COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A check of an organization’s accounting systems and records.
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An information system that identifies, measures, records and communicates relevant, reliable, and comparable information about an organization’s economic activities
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The part of accounting that involves recording economic transactions and events, either electronically or manually; also called record keeping.
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Detailed explanation-1: -The correct answer is auditing. Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following a documented system of recording transactions.
Detailed explanation-2: -During the independent audit, the auditor will review the organization’s financial statements to determine whether they adhere to “generally accepted accounting principles” (commonly referred to as “GAAP”).
Detailed explanation-3: -Detailed Solution. Key PointsVouching: Vouching is one of the activities of an auditor in process of auditing in which an auditor checks each and every entry in the books of accounts and verifies it with the evidence available in the form of vouchers.