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In a partnership deed, the provision for appointing an auditor is related to what?

Answer and explanation

Correct answer: Audit of accounts

The appointment of an auditor in the deed is intended to provide for an independent audit of the partnership's accounts. This ensures accuracy, verification of accounting entries and periodic financial reporting. Option B (profit sharing ratio) deals with distribution of profits and is unrelated to the auditing of books. Exam tip: look for keywords such as 'auditor', 'audit' or 'accounts' in the deed to identify this provision.

Related tags

AuditorPartnership DeedPartnership AccountsAppointment Of AuditorAccounting PrinciplesPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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