Question

What is the purpose of internal audit?

• A. Meeting the statutory requirements.
• B. Meeting the needs of shareholders.
• C. Meeting the whims of creditors.
• D. Meeting the needs of the management to conduct business more efficiently.

Answer 1

The correct option is D Meeting the needs of the management to conduct business more efficiently.

Internal audit is conducted to have a better control over internal process and to strengthen the internal control system. Its a continuous audit of the books of account to detect and prevent frauds and errors. Internal Audit provides the real time input to the management so that the business can be conducted more efficiently.