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Standard XII

Business Studies

Modern Techniques of Managerial Control

Which of the ...

Question

Which of the following statements is not true about continuous audit?

It is conducted at regular interval.

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It is needed when the organisation has a good internal control system.

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It may be carried out on daily basis.

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It is expensive.

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Solution

The correct option is D It is needed when the organisation has a good internal control system.
Continuous audit is generally technology driven and process is set in such a way to automate error checking and verification on real time basis.
It is a continuous process and done on a regular basis.
Hence it is not a correct statement that it is needed when the organization has a good internal control system.

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