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What is the main purpose of a legal audit?

Answer and explanation

Correct answer: Identifying compliance gaps and potential legal risks

A legal audit examines an organisation’s policies, procedures and activities against applicable laws and regulations. Its main purpose is to identify compliance gaps and the legal risks arising from them; therefore, option D is correct. Estimating market demand is a marketing activity, not a legal audit function. Exam tip: associate a legal audit with legal compliance and risk identification.

Related tags

Business EnvironmentLegal EnvironmentLegal AuditCompliance RiskClass 12 Business StudiesBusiness StudiesClass 12 Mcq

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