Internal audit is
a) Compulsory for a company with paid-up capital of Rs. 25 lakh and above
b) Voluntary for a company
c) Not necessary for a company
d) Necessary for a company
Answer: (b) Internal audit is voluntary for a company. The appointment of an internal auditor is required for all producers, regardless of criteria. Furthermore, the proviso states that any existing company that meets any of the above criteria must comply with the requirements of section 138 and rule 13 within six months of the section’s implementation.
More MCQ and Answers on Auditing
- Which among the following is not a right of company auditors.
- Test checking is done when there is an effective system of _________
- Test checking means
- Audit working papers are
- Current audit file consists of
- ____ begins where accounting ends.
- ________audit is compulsory for joint stock companies.
- Treating revenue expenditure as capital expenditure is an example of error of
- Financial statements are prepared by
- Preliminary expanses not written off are treated as