Question

The difference between internal audit and statutory audit is that ______________.

• A. Internal auditor should be a qualified chartered accountant whereas statutory auditor need not hold such a qualification
• B. Internal auditor has to submit his report to the shareholders while a statutory auditor has to submit, his report to the management
• C. Appointment of internal auditor is optional while the appointment of statutory auditor is obligatory
• D. none of the above

Answer 1

Answer: (C)

Appointment of internal auditor is optional while the appointment of statutory auditor is obligatory

Internal Audit is conducted for the internal check and control over the process and policies of the organization. It is conducted at the wish of the management.

Statutory Audit is a compulsory audit conducted by a qualified chartered accountant appointed under the various compliance and act.

Internal Audit is optional while statutory audit is compulsory.