Question

What is the difference between internal and external audits?

Answer 1

Answer- The most notable difference between internal and external audit is the fact that while internal audit is conduucted by a separate department that still is inside an orgainsation and report of the internal audit is also submitted to the managment of the organization, while external is conducted by an independent body that are outside from the organization.

Internal audit is more and less a routine and regular procedure that canbe conducted at any time during the year on the order of the managment of the orgainzation.

External audit are required by law and are undertaken by public accounting firms.These audit bring to light the financial condition of a company in a most unbiased manner and reflect a fair assesment of the financial standing of a company.External audit are performed in the most professional manner .External audit are significant from the point of view of all stakeholder.

A major point of differnece between these two audit type is the fact that while internal audit are more concerned with risk managment,eternal audit remain confined to final account of a company and data presented in a fair and transparent manner in the financial statements or not.