Q. Which of the following statements with regard to rules regarding exemption from branch audit is not true?
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(A)
A branch office of a company can be granted exemption on the basis of quantum of activity criterion
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(B)
If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted from branch audit
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(C)
Cost consideration should be considered as an important factor/ground for exemption from branch audit
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(D)
The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis
✅ Correct Answer: (B)
If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted from branch audit