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If someone has spend sufficient time in external audit, in your opinion whether his/her experience and skills of external audit ll be sufficient for effective management of a position of internal audit in a Company?
It is true that there is a definite plus for external audit experiance for an internal audit job. But practically external audit is not detailed oriented, as you know we do it randomly leaving out sometimes some of the very important areas as mangement is concerned. Unlike internal audit is detailed oriented and more concerned with the internal controls as well. So a person having external audit experiance may fit well, if he is fully analytical in mind, and ready to look into details.
Definitely. External Auditors have wide experience in difference financial accounting environment and have more exposure than a person within a specific industry. So I believe, the best match for an internal audit manager could be a person with external audit experience.
Yes, but if the external or statutory auditors are obliged to the following:
1. On an appointement
2. In an operational audit
3. Goals of Auditing
4. Period of Auditing
5. Independancy
6. Methodology of Auditing.
7. and so on.
Yes External Audit experience can be very useful for a person to handle the internal audit job as they have vast experience in difference financial accounting environment and have more exposure than a person within a specific industry.
External auditors have advantage because they had exposure of different fields within the organisation and different industry audits. Main difference between external and internal audit is that former is a statutary audit and later is function inside the organisation.
External audit experience can provide valuable skills such as understanding risk, compliance, and financial reporting. However, effectively managing an internal audit position requires a broader understanding of the company's operations, internal controls, and business processes. The internal audit role is more focused on operational efficiency and risk management within the organization, requiring a different mindset and expertise. While external audit experience is beneficial, additional training or experience in internal processes and stakeholder management is often necessary for success in internal audit
The external auditor can use internal auditors who may have relevant expertise in particular areas, and. The external audit team can focus on the more significant audit issues.
External audit experience is helpful, but internal audit involves additional skills like process improvement and risk management. While external auditors focus on financial assessments, internal auditors work on internal controls and compliance.
While I think external audit experience is a great background for internal auditors to have, I don't believe its sufficient on its own as the focus, level of detail and audience is different. I would urge any internal auditor to take the CIA exams as they are a great foundation for the profession as a first step. That said, it is not beyond the scope of any competent professional to get up to speed in a matter of months with the right coaching and guidance.
it is possible because you have already the knowledge or guides in executing the same.
Yes I think the the experience of External Auditors is suffcient to Internal Audit .
While external audit experience provides a solid foundation, it may not be sufficient on its own to effectively manage an internal audit position in a company. Internal audit and external audit have overlapping but distinct roles, and successfully transitioning to internal audit leadership requires understanding these differences and acquiring additional skills and perspectives.
