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    Question

    A key difference between an Internal Audit and a

    Statutory Audit is that the scope of an Internal Audit is:
    A Defined by the Companies Act. Correct Answer Incorrect Answer
    B Mandatory for all companies. Correct Answer Incorrect Answer
    C Determined by the management/audit committee. Correct Answer Incorrect Answer
    D Focused only on financial statements. Correct Answer Incorrect Answer

    Solution

    The scope, authority, and responsibilities of the internal audit function are defined by the management and the audit committee of the company. This is in contrast to a statutory audit, whose scope is largely prescribed by law and auditing standards.

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