Multiple choice

Directions: Choose the correct option for the given question.

Which of the following statements is correct?

  1. Audit of an educational institution is compulsory, if it is run by a charitable trust.

  2. A club is treated as a commercial establishment.

  3. The accounts of a charitable trust can be audited by any person, who belongs to accountancy profession.

  4. Audit of a charitable trust is not compulsory under law.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Educational institutions run by charitable trusts must undergo audit under income tax regulations if they receive exemptions or public funding. Clubs are not commercial establishments. Charitable trust audits require qualified auditors, not any person from the accountancy profession.

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