Internal audit is undertaken:

Correct answer: C. By a person appointed by the management

  • A. By independent auditor
  • B. Statutorily appointed auditor
  • C. By a person appointed by the management
  • D. By a government auditor

Explanation

Internal audit is conducted by a person or department appointed by management to review operations and controls. This distinguishes it from an external, statutory or government audit.

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About Auditing

Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.

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