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Which statement best explains External audit?

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Question ID #26950 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 5 Medium

Which statement best explains External audit?

Correct Answer: B. Independent examination commonly performed by an auditor outside the entity
External audit: Independent examination commonly performed by an auditor outside the entity

Question: Which statement best explains External audit?

A. Information used by an auditor in arriving at conclusions on which the audit opinion is based

B. Independent examination commonly performed by an auditor outside the entity

C. Assumption that an entity will continue operations for the foreseeable future

D. Examination of documentary evidence supporting transactions

Correct Answer: B. Independent examination commonly performed by an auditor outside the entityExternal audit: Independent examination commonly performed by an auditor outside the entity

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Which statement best explains External audit? - MCQ Explanation

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Correct answer: B. Independent examination commonly performed by an auditor outside the entity