Multiple choice

Directions: Choose the correct option for the given question.

Which of the following statements is correct?

  1. Internal audit and management audit are the same.

  2. Internal audit and statutory audit are the same.

  3. Internal audit is compulsory in all cases.

  4. Statutory audit of company accounts is compulsory.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Internal audit is optional and depends on management decision. Statutory audit of company accounts is mandatory under Companies Act for all companies regardless of size. Management audit is different from internal audit - the former evaluates management efficiency while latter checks internal controls.

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