An audit that must be carried out because a law such as the Companies Act, 2013 requires it, rather than because the owners choose to commission it, is called:
Question and options
An audit that must be carried out because a law such as the Companies Act, 2013 requires it, rather than because the owners choose to commission it, is called:
A statutory audit
A partial audit
An interim audit
A continuous audit
Answer and explanation
A statutory audit is one required by law, such as the annual audit of every company’s financial statements under sections 139 and 143 of the Companies Act, 2013. Continuous, interim and partial audits describe the timing or scope of an audit, and any of them may be voluntary.
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