Acid
02-02-08, 08:19 PM
Hi Annie!
I wish you are enjoying your studies ! ;)
I am able to summerise the following differences between the Internal and external auditors.
Internal auditors :
Are part of the organization
Report to Audit committe / Directors
Help is designing organizations systems
Help in developing risk management policies
Ensure the strategic policies implemented for risk management are operating effetively.
Work maybe of continuse nature
Evaluate the effectiveness of internal control systems
External auditors:
Are completely independant of the organization
Report to companys shareholders/Members
Provide opinion of truthfulness of financial statements
Peforms work generally on test basis
These are all the differences I was able to summarise . Apart from this , External auditors report format is also governed by legislations however internal auditors report can adapt a format which will effectively convey the objectives of the report required by the management.
What do you understand by the Scope of Internal Audit?
I wish you are enjoying your studies ! ;)
I am able to summerise the following differences between the Internal and external auditors.
Internal auditors :
Are part of the organization
Report to Audit committe / Directors
Help is designing organizations systems
Help in developing risk management policies
Ensure the strategic policies implemented for risk management are operating effetively.
Work maybe of continuse nature
Evaluate the effectiveness of internal control systems
External auditors:
Are completely independant of the organization
Report to companys shareholders/Members
Provide opinion of truthfulness of financial statements
Peforms work generally on test basis
These are all the differences I was able to summarise . Apart from this , External auditors report format is also governed by legislations however internal auditors report can adapt a format which will effectively convey the objectives of the report required by the management.
What do you understand by the Scope of Internal Audit?