Question

9) If an auditor is not satisfied with the fairness of balance sheet and profit & loss A/c, he will give a
a) Clean report b) Qualified report c) Accounts report d) Internal report

Answer 1

Answer:

clear report

Explanation:

because it has to me written propeely

Answer 2

If an auditor is not satisfied with the fairness of balance sheet and profit & loss A/c, he will give a Qualified Report

Therefore, option (b) is correct.

Explanation:

There are two types of Audit reports:

1) Clean Report or Unqualified Audit report:

If the auditor is satisfied that the accounts, balance sheet and profit & loss accounts are fair and they do present a true picture according to the accounting principles and statutory requirements, he will give an unqualified or clean report.

2) Qualified Report:

If the auditor company is not satisfied with any information or explanation given to him or if he thinks that the balance sheet and profit & loss accounts do not present a true and fair view of the state of affairs of the company then he will give a qualified report.

Therefore, option (b) is correct.

Hope this answer is helpful.

Know More:

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