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Which problem is reduced by an auditor-appointment clause in the partnership deed?

Answer and explanation

Correct answer: Doubt among partners about reliability of accounts

An auditor-appointment clause ensures independent, regular scrutiny of the books. Such independent audit detects errors, irregular entries or fraud, increasing trust among partners and reducing disputes about the reliability of accounts. Option B is a plausible distractor but relates to operational packing of goods, not to accounting transparency. Exam tip: when the deed mentions 'auditor', 'audit' or 'independent inspection', select the option referring to account reliability, transparency or dispute reduction.

Related tags

Audit ClausePartnership DeedPartnership AccountsAccounting TransparencyPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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