TOP 100+ Internal Audit MCQ and Answers with FREE PDF

Internal Audit MCQ and Answers are most important for your upcoming examinations including SSC, PCS, IAS, UPSC, Railway, Banking, and other competitive examinations. If you prepare for your exams according to our given Internal Audit MCQ and Answer and perform well in the upcoming examination so we suggest you practice Internal Audit MCQ and Answer more and more from our website because it will help you to score high.

Internal Audit MCQ and Answers

1. Internal audit means

a) Audit undertaken to ascertain truth and fairness of state of affairs

b) Audit undertaken internally to evaluate management functions

c) Audit undertaken by employees of the organization to check financial irregularities

d) Audit by independent auditor to improve internal affairs

Answer: c)


2. The objective of internal control is to

a) Efficient conduct of business

b) Safeguarding assets

c) Preventing and detecting fraud and other unlawful acts

d) All of these

Answer: d)


3. Internal auditor has to submit report to

a) Shareholders

b) Government

c) Company Law board

d) Board of directors

Answer: d)


4. The objective of internal audit is

a) Proper control

b) Perfect accounting system

c) Asset protection

d) All of the above

Answer: d)


5. Internal audit is also known as

a) corporate audit

b) business audit

c) social audit

d) None of these

Answer: a) 


6. Internal audit is done

a) Before external audit

b) After external audit

c) Parallel to external audit

d) Vertical to external audit

Answer: c)


7. 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)


8. Objective of internal audit includes

a) Proper control

b) Perfect accounting system

c) Asset protection

d) All of the above

Answer: d)


9. Internal auditor of a company must be

a) Cost accountant

b) Chartered accountant

c) ICWA

d) Need not possess any professional qualification

Answer: d)


10. Internal auditor is appointed by

a) Management

b) Shareholders

c) Government

d) Statutory body

Answer: a)


11. Internal audit is

a) An independent audit

b) Objective assurance audit

c) Consulting activity designed audit

d) All of these

Answer: d)


12. An internal audit department ____

a) is the independent department

b) is the Non-independent department

c) is the inter-dependent department

d) None of these

Answer: a)


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