New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    ……………………………………also known as

    proprietary audits, a primary organization evaluates the performance of a supplier or contractor.
    A First party audit Correct Answer Incorrect Answer
    B Second party audit Correct Answer Incorrect Answer
    C Third party audit Correct Answer Incorrect Answer
    D A & C Correct Answer Incorrect Answer

    Solution

    Audits can be classified in 3 ways based on the auditor/auditee relationship: - First Party: - This type of audit is a self-assessment, to internally verify that procedures and management strategies reflect the requirements of a standard and reflect business objectives. Second Party: - Also known as proprietary audits, a primary organization evaluates the performance of a supplier or contractor. Third Party: - Independent auditors from outside the organization conduct audits, often for purposes of certification.

    Practice Next

    Relevant for Exams: