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If a company conducts an independent audit for legal compliance, what will be the main purpose?

Answer and explanation

Correct answer: To independently assess legal compliance and identify gaps

An independent legal-compliance audit checks whether the company is following applicable laws, regulations and required procedures. It helps identify compliance gaps and possible legal risks so that corrective action can be taken. Setting sales targets or appraising employees are separate managerial functions. Exam tip: Link an “independent audit” with impartial verification and identification of compliance risks.

Related tags

Business EnvironmentLegal EnvironmentLegal ComplianceIndependent AuditCorporate GovernanceClass 12Business StudiesClass 12 Mcq

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