During course of audit of a company, it is noticed by auditor that Profit before tax of company is 5 lakhs. Depreciation on building reflected in…
CA Intermediate · Auditing and Ethics · MTP · May 2024
During course of audit of a company, it is noticed by auditor that Profit before tax of company is 5 lakhs. Depreciation on building reflected in Schedule of PPE forming part of financial statements has been computed for 10lacs. The correct depreciation, according to him, should be 25lacs. The above description as a whole is an example of __________?
Suggested Answer and Working Notes:
Correct Answer: Option (A)
(A) Misstatement
Topics: Audit of Items of Financial Statements
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