Q. Which of the following statements with regard to rules regarding exemptionfrom branch audit is not true? (Solved)
1. A branch office of a company can be granted exemption on the basis of quantum of activity criterion
2. 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
3. Cost consideration should be considered as an important factor/ground for exemption from branch audit
4. The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis
- 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