Correct Answer:
A. An employee or function inside the entity that evaluates risk management, control and governance
Internal audit is an internal appraisal function; the external auditor reports independently to shareholders or members.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Compared with an external auditor, an internal auditor is mainly:
Related MCQs
A budget deficit occurs when:
A.
Government expenditure exceeds government revenue
B.
Government revenue exceeds expenditure
C.
Revenue equals expenditure
D.
Public debt is zero
Correct answer is:
A. Government expenditure exceeds government revenue
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The time value of money means that:
A.
Money loses value only when it is spent
B.
Future money is worth more than present money
C.
Money available today is worth more than the same amount in the future
D.
Interest rates do not matter
Correct answer is:
C. Money available today is worth more than the same amount in the future
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A qualified audit certificate on government accounts may be given when:
A.
The accounts are perfect
B.
The auditor finds material errors or is unable to obtain sufficient evidence on specific items
C.
The department refuses to pay audit fees
D.
The budget is surplus
Correct answer is:
B. The auditor finds material errors or is unable to obtain sufficient evidence on specific items
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Annual demand is 10,000 units, ordering cost is Rs. 50 per order and holding cost is Rs. 4 per unit per year. The Economic Order Quantity (EOQ) is:
A.
250 units
B.
1,000 units
C.
500 units
D.
5,000 units
Correct answer is:
C. 500 units
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Beta measures:
A.
Unsystematic risk
B.
Liquidity of a security
C.
Systematic (market) risk of a security
D.
Dividend yield
Correct answer is:
C. Systematic (market) risk of a security
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Which of the following is NOT one of Adam Smith's canons of taxation?
A.
Equity
B.
Certainty
C.
Elasticity
D.
Economy
Correct answer is:
C. Elasticity
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