[Solved] Management audit is

Management audit is

a) Compulsory

b) Not compulsory

c) Compulsory under Income Tax Act

d) Compulsory under Indian Contract Act.

Answer: (b) Management audit is not compulsory under law. The shareholders or board of directors may appoint the management auditor. No specific qualifications have been prescribed for the management auditor. Generally chartered accountant are appointed as the management Page 3 auditor.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
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  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
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  10. While checking allotment, auditor should see that amount

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