Why is an audit important?
آڈٹ کیوں ضروری ہے؟
- To detect fraud
- To improve financial management
- To comply with laws and regulations
- All of the above
Explanation
An audit is important for:
- Detecting fraud: Audits help identify and prevent fraudulent activities, such as embezzlement or financial statement manipulation.
- Improving financial management: Audits evaluate the effectiveness of financial controls, identify areas for improvement, and provide recommendations for enhancing financial management practices.
- Complying with laws and regulations: Audits ensure that financial statements are accurate and comply with relevant laws, regulations, and accounting standards, such as GAAP or IFRS.
Related MCQs
Leave a Reply
Your email address will not be published. Required fields are marked *
