Internal audit is undertaken ____
a) By independent auditor
b) Statutorily appointed auditor
c) By a person appointed by the management
d) By a government auditor
Answer: c) An internal audit is undertaken By a person appointed by the management. He is called an internal auditor. He is a full-time employee of the company and he works under the control of the management. An audit conducted by an auditor who is an outside person and who is not directly in the employment of the company is called an external audit. The external auditor is appointed by the shareholders at their annual general meeting and his report along with that of the internal auditor is placed before them in their next annual general meeting. Thus, external auditors are more independent than internal auditors.