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Which statement best explains Internal audit?

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Question ID #25924 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Auditing Sectional Test 2026 Medium

Which statement best explains Internal audit?

Correct Answer: D. Independent assurance activity within or for an organization to evaluate controls, risk management and governance
Internal audit: Independent assurance activity within or for an organization to evaluate controls, risk management and governance

Question: Which statement best explains Internal audit?

A. Application of audit procedures to less than 100 percent of items in a population

B. Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated

C. Auditor does not express an opinion because sufficient appropriate evidence cannot be obtained and effects may be pervasive

D. Independent assurance activity within or for an organization to evaluate controls, risk management and governance

Correct Answer: D. Independent assurance activity within or for an organization to evaluate controls, risk management and governanceInternal audit: Independent assurance activity within or for an organization to evaluate controls, risk management and governance

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Which statement best explains Internal audit? - MCQ Explanation

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Correct answer: D. Independent assurance activity within or for an organization to evaluate controls, risk management and governance