SEO MCQ Question Page

Which statement best explains External audit?

Practice this MCQ with options, instant answer checking, explanation, exam-wise filters, next/previous navigation and shareable result image.

Question ID #25926 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Auditing Sectional Test 2026 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

← Previous Question Next Question →

Which statement best explains External audit? - MCQ Explanation

This question is useful for exam preparation because it provides direct multiple-choice practice with options, answer checking and explanation.

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