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    Internal Audit VS External Audit

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    Andi Tri Jati
    Internal audits are conducted by a company's employees or contractors to evaluate its operations and internal controls, while external audits are conducted by independent third parties to assess the accuracy of financial statements and compliance with laws and regulations. The main differences between the two types of audits are their objectives, focus, reporting structure, frequency, and cost.

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    Internal Audit VS External Audit

    Uploaded by

    Andi Tri Jati
    145 views10 pages
    Internal audits are conducted by a company's employees or contractors to evaluate its operations and internal controls, while external audits are conducted by independent third parties to assess the accuracy of financial statements and compliance with laws and regulations. The main differences between the two types of audits are their objectives, focus, reporting structure, frequency, and cost.

    Original Title

    INTERNAL AUDIT VS EXTERNAL AUDIT

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    Internal audits are conducted by a company's employees or contractors to evaluate its operations and internal controls, while external audits are conducted by independent third parties to assess the accuracy of financial statements and compliance with laws and regulations. The main differences between the two types of audits are their objectives, focus, reporting structure, frequency, and cost.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    145 views10 pages

    Internal Audit VS External Audit

    Uploaded by

    Andi Tri Jati
    Internal audits are conducted by a company's employees or contractors to evaluate its operations and internal controls, while external audits are conducted by independent third parties to assess the accuracy of financial statements and compliance with laws and regulations. The main differences between the two types of audits are their objectives, focus, reporting structure, frequency, and cost.

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    of 10

    Mohamed Samir Rashed

    CMA , IFRSDIP

    INTERNAL AUDIT
    VS
    EXTERNAL AUDIT

    Internal and external audits are two


    different types of audit processes that
    serve different purposes and are conducted
    by different entities.

    Here are the main differences


    between internal and external
    audits:

    1-Objective
    Internal audits are conducted by employees
    or contractors of the company being
    audited, while external audits are
    conducted by independent third-party
    auditors.

    The objective of internal audits is to


    evaluate the company's operations and
    internal controls, while external audits are
    performed to assess the accuracy of
    financial statements and compliance with
    applicable laws and regulations.

    2-Focus

    Internal audits focus on a broad range


    of business processes and risks,
    including operational, financial, and
    compliance risks.

    External audits primarily focus on


    financial statements, including balance
    sheets, income statements, and cash
    flow statements.

    3-Reporting

    Internal auditors report to the


    company's management team or board
    of directors, while external auditors
    report to shareholders, creditors, or
    regulatory bodies.

    The reports produced by internal


    auditors are typically used for internal
    purposes only, while external auditors'
    reports are made available to the
    public.
    4-Frequency

    Internal audits can be conducted at


    any time during the year and can
    be performed on a continuous
    basis, while external audits are
    usually conducted once a year, at
    the end of the company's fiscal
    year.

    5-Cost

    Internal audits are typically less


    expensive than external audits
    since they are conducted by the
    company's own employees or
    contractors.

    External audits are generally more


    costly because they require hiring
    an independent auditing firm.

    Overall, the key difference between


    internal and external audits is that
    internal audits are focused on
    evaluating the company's internal
    controls and processes, while external
    audits are focused on verifying the
    accuracy of the company's financial
    statements and compliance with
    applicable laws and regulations.

    Mohamed Samir Rashed


    CMA , IFRSDIP
    For contact
    [email protected]
    follow me for more financial information

    Mohamed Samir CMA , DIPIFR

    @MohamedSamirRa
    Mohamed Samir Rashed

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