Syllabus C: Business functions, regulation and technology — ACCA Practice Question 13

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Focus on the end goal: External audit is for shareholders (financial statements), Internal audit is for management (processes and controls).

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B.The external auditor expresses an opinion on the truth and fairness of the financial statements, while the internal auditor evaluates and improves the effectiveness of risk management and controls.✓ Correct

The primary objective of an external audit is to provide an independent opinion to shareholders on whether the financial statements give a true and fair view. Internal audit is an independent appraisal function established within an organization to examine and evaluate its activities, risk management, and internal controls.

Common mistakes

Believing that external auditors are primarily there to detect fraud. Their primary role is expressing an opinion on the financial statements.

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Common mistakes

Practice the full ACCA BT — Business & Technology Practice Exam 5

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