Skip to content

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

Which statement best distinguishes the internal auditor's role from that of the statutory auditor of a company?

Internal audit is set up by the board or management and has a broad scope covering operations, risk, controls and compliance, whereas the statutory auditor is appointed by members and gives an opinion on whether the financial statements give a true and fair view.

  1. AInternal audit is appointed by shareholders and reports to them on true and fair view
  2. BInternal audit is directed by management or the board and covers wider operational, risk and control areas, while statutory audit gives an opinion on financial statementsCorrect
  3. CInternal audit is compulsory for every company and statutory audit is optional
  4. DBoth have identical scope and reporting responsibilities

Explanation

The internal auditor is appointed by the board or management and has a scope set by them, often covering operations, risk and compliance. The statutory auditor is appointed by members and reports on whether the financial statements give a true and fair view. Internal audit is not compulsory for every company.

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