Skip to content

CS Professional · Internal and Forensic Audit · Internal Audit: Introduction and Overview

Under the Companies (Accounts) Rules, who decides the scope, functioning, periodicity and methodology of conducting the internal audit of a company?

The Audit Committee, or the Board where no Audit Committee exists, decides the scope, functioning, periodicity and methodology of internal audit in consultation with the internal auditor. The statutory auditor, Registrar and shareholders do not set these matters.

  1. AThe Audit Committee, or the Board in consultation with the internal auditorCorrect
  2. BThe statutory auditor alone
  3. CThe Registrar of Companies
  4. DThe shareholders in the annual general meeting

Explanation

The rules state that the Audit Committee of the company, or the Board where there is no Audit Committee, shall in consultation with the internal auditor formulate the scope, functioning, periodicity and methodology. The statutory auditor, Registrar and shareholders have no such role.

Did you get it right without looking?

One question tells you little. A timed set on Internal Audit: Introduction and Overview shows your real accuracy, how long you take and where you lose marks.

Practise Internal Audit: Introduction and OverviewFree diagnostic mock

More Internal Audit: Introduction and Overview questions