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      Question

      The primary objective of an Internal Audit, as opposed

      to a Statutory Audit, is to:
      A Express an opinion on the true and fair view of financial statements Correct Answer Incorrect Answer
      B Ensure compliance with accounting standards Correct Answer Incorrect Answer
      C Evaluate and improve the effectiveness of risk management, control, and governance processes Correct Answer Incorrect Answer
      D Detect fraud and embezzlement Correct Answer Incorrect Answer
      E Fulfil a legal requirement under the Companies Act Correct Answer Incorrect Answer

      Solution

      A Statutory Audit is a legal requirement (E) with the primary objective of reporting on the truth and fairness of financial statements (A). An Internal Audit is a management function. Its scope is broader and forward-looking, focusing on evaluating and improving the organization's internal controls, operational efficiency, risk management practices, and governance processes. While detecting fraud (D) can be an outcome, it is not the primary objective.

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