Question

Briefly explain the difference between Internal auditing and External auditing

Answer 1

Company employees who are outside of the department being audited conduct an internal audit or the function might be outsourced, while an external audit could be done by an independent CPA firm.

External auditors represent the interests of third party stakeholders, while internal auditors serve as an independent appraisal function within the organization. Internal auditors often perform tasks, which can reduce external audit fees and help to achieve audit efficiency and reduce audit fees