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Question
Who determines the scope of work of a statutory auditor?
Who determines the scope of work of a statutory auditor?
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Solution
The correct option is B Management.
Defining of audit scope is an important factor. It involves the amount of time and documents which are involved in the audit. The Audit scope ultimately defines that how deeply an audit is performed. Audits are performed for several purposes i.e. regular check up of company records, to check for internal control and error, detecting and preventing frauds etc.
Due to this, audit scope and objective have a different meaning depending upon the purpose of audit. The scope of audit is determines by the management.
Defining of audit scope is an important factor. It involves the amount of time and documents which are involved in the audit. The Audit scope ultimately defines that how deeply an audit is performed. Audits are performed for several purposes i.e. regular check up of company records, to check for internal control and error, detecting and preventing frauds etc.
Due to this, audit scope and objective have a different meaning depending upon the purpose of audit. The scope of audit is determines by the management.
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