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IIA Standard1300 covers the Quality Assurance and Improvement Program that need to be established by the CAE covering all aspects of the internal audit activity. Standard1312 requires that "External Assessment must be conducted at least once every five years by a qualified,independent assessor or assessment team from outside the organization.
As functions and requirements both are different. But ways and means of acheiving the objectives are almost same. So we can say that they complement each other in terms of their functioning but not in terms of their objectives.
Internal Audit objective is audit all financial actions and process , reporting to CFO . On the other hand External audit objective is audit all financial statements with sample of actions , analysis the final outputs reporting the shareholders.
As long as Internal auditor do his job with the standers it help the External to moving fast in reports and statements , Yes Internal and External are complementary.
NO
No
Internal auditing is an independent activity within Organization designed to add value and improve an organization's operations. It helps an organization to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing helps organization to achieve it's objective by providing insight and recommendations based on analyses and assessments of data and business processes. Whereas external audit performs an audit in accordance with specific laws or rules on the financial statements of entity and their main objective is give opinion on financial statements whether it gives true and fair information about entity financials. External Auditor usually report to the investors, government agencies, and the general public.
Both functions have their own importance, internal auditors are more focused on company operations, risk management control and governance whereas external auditors are focused on financial statement whether it gives true and fair reflection of the company’s financial position
Although these are two distinct functions but they do have some complimentary characteristics
There is a difference between them as the internal audit depends on the internal control systems and modify aphid to serve the facility and the research sample it wider or all data movements and the administrative and financial procedures , The external audit depends on the samples and the extent of the commitment established the terms of internal control and the strength of the internal audit control of the facility and extracted the results of the financial position of the entity
yes right, if the scope, objectivity and independance of internal audit is sufficient and appropriate then relaince can be put upon by external audit.
I would differ to the statement. Complimentary are the activities whose objectives can not be acheived by doing both of them. External and Internal Audit are different functions both are designed to add value, External Audit add value primarily to the decissions of General Public and regulatory bodies While Internal Auditors Add value to the buisness of which they are acting as an important function by doing objective assurance and consulting activity Independently.
