Directions: Choose the correct option for the given question.
Match List-I with List-II and select the correct answer using the code given below the Lists
List-I (Technique)
List-II (Auditing Procedure)
(a) Rotation of Duties (1) Internal control
(b) Random Sampling (2) Physical examination
(c) Trend Analysis (3) Selective verification(d) Cash verification (4) Overall assessmentCodes:
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(a) 1 (b) 4 (c) 3 (d) 2
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(a) 2 (b) 3 (c) 4 (d) 1
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(a) 1 (b) 3 (c) 4 (d) 2
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(a) 2 (b) 4 (c) 3 (d) 1
C
Correct answer
Explanation
Rotation of duties (a) is an internal control technique (1) that prevents fraud by separating responsibilities. Random sampling (b) enables selective verification (3) of transactions rather than 100% checking. Trend analysis (c) is an analytical procedure for overall assessment (4) of financial statement reasonableness. Cash verification (d) requires physical examination (2) through actual counting and reconciliation of cash balances.