The verification of the value of assets, liabilities, balance of reserves, provision and the amount of profits earned or loss suffered is called . . . . . . . .

The correct answer is: A. Balance sheet audit

A balance sheet audit is a type of financial audit that is conducted to verify the accuracy of a company’s balance sheet. The balance sheet is a financial statement that shows a company’s assets, liabilities, and equity at a specific point in time. The purpose of a balance sheet audit is to ensure that the balance sheet is accurate and that it presents a true and fair view of the company’s financial position.

A balance sheet audit typically involves the following steps:

1. The auditor will review the company’s accounting records and procedures to understand how the company records its assets, liabilities, and equity.
2. The auditor will select a sample of transactions and verify that they have been recorded correctly in the company’s accounting records.
3. The auditor will review the company’s financial statements and make sure that they are presented in accordance with generally accepted accounting principles (GAAP).
4. The auditor will issue a report that describes the results of the audit and includes any findings or recommendations.

A balance sheet audit is an important part of the financial reporting process. It helps to ensure that investors and other users of financial statements can rely on the information that is presented.

The other options are incorrect because they do not accurately describe the type of audit that is being discussed.

• B. Continuous audit is a type of audit that is conducted on an ongoing basis. This type of audit is often used by companies that have a high level of risk or that are subject to frequent changes.
• C. Interim audit is a type of audit that is conducted between regular financial statement audits. This type of audit is often used to provide assurance to investors or lenders that the company’s financial condition is not materially different from what was reported in the previous financial statements.
• D. Partial audit is a type of audit that is conducted on a limited scope. This type of audit is often used when the company has a small number of assets or liabilities or when the auditor is only interested in a specific area of the company’s financial statements.