ExpertEasy1 markMultiple Choice
ACCA · Question 37 · Syllabus C: Business functions, regulation and technology
The primary objective of an internal audit is to express an opinion on whether the financial statements give a true and fair view.
The primary objective of an internal audit is to express an opinion on whether the financial statements give a true and fair view.
Answer options:
A.
True
B.
False
C.
Only for public companies
D.
Only for charities
How to approach this question
Distinguish between the goals of internal vs external auditors.
Full Answer
B.False✓ Correct
Expressing an opinion on the 'true and fair view' of financial statements is the statutory duty of the *external* auditor. Internal audit is an independent appraisal function established within an organization to examine and evaluate its activities (controls, risks, efficiency).
Common mistakes
Assuming all auditors do the same thing.
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