The remuneration of an auditor of a partnership firm is fixed by
A. The Partnership Act
B. The Companies Act
C. Government
D. None of the above
Answer: Option D
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Related Questions on Auditing
A. 2, 1, 3, 4, 5
B. 1, 2, 3, 4, 5
C. 5, 1, 4, 3, 2
D. 4, 1, 3, 2, 5
Auditing and accounting are concerned with which of the following financial statements?
A. Auditing uses the theory of evidence to verify the financial information made available by accountancy
B. Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant
C. Auditor should have a thorough knowledge of accounting concepts and convention to enable opinion on financial statements
D. All of the above
The remuneration of an auditor for a partnership firm is fixed by the partners of the firm through mutual agreement, as defined in their partnership deed or subsequent decisions. Unlike companies, the auditor appointment and fee for a partnership is governed by the agreement between the partners rather than statutory mandates like Section 142 of the Companies Act.
Mutual Consent: Partners collectively agree on the auditor's terms and remuneration.
Partnership Deed: Ideally, the method for appointing the auditor and fixing their remuneration is mentioned in the firm's partnership deed.
Appointment Authority: The party appointing the auditor generally determines the remuneration.