Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.
Internal and external auditors often carry out their work using similar procedures. However, there are a number of fundamental differences between the two audit roles.
* External auditors are there to express an opinion on the truth and fairness of the annual financial statements while internal auditors are there to examine systems and controls and assess risks in order to make recommendations to management for improvement.
* The external auditor will carry out whatever work he deems necessary to reach that opinion while the internal auditor's work programme will be to a large extent be dictated by management.
* External auditors are appointed by the shareholders to independence while internal auditors are by management.
* the duties an auditors are set by statute while internal auditor's work is set by by management.
* External auditors report to shareholders and internal auditors report to management.
* There are qualification to act as external auditor which are set by law while no statutory requirements for internal auditors.
The external auditor has no specific responsibility for fraud and error, other than to report whether or not the financial statements give a true and fair view while the external auditor may be given specific responsibility or error by management and he is likely to have much lower materiality threshold.
