When audit is undertaken to check the financial controls & irregularities in the organization, it is which type of audit?
Last updated Jun 24, 2026
Correct Answer:
Option C —
internal audit
While there is some overlap between these categories, checking for both financial controls and irregularities (like fraud or waste) is the hallmark of an internal audit.
Why "Internal Audit" is the Best Fit
An internal audit is a continuous process conducted by an organization’s own staff or an external firm to evaluate the effectiveness of its risk management, control, and governance processes.
Financial Controls: It ensures the systems meant to protect assets and ensure accurate reporting are working.
Irregularities: It specifically looks for deviations from the norm, such as embezzlement, mismanagement, or inefficiency
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
