What is Internal audit? Difference between internal and statutory audit.

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Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

Internal audit is conducted by employees of the organization to evaluate and improve the effectiveness of risk management, control, and governance processes.
Statutory audit is a mandatory audit of the financial statements of an organization conducted by external auditors to ensure compliance with legal requirements.
Internal audit focuses on providing recommendations for improvement, while statutory audit focuses on providing an opinion on the accuracy of financial statements.
Internal audit reports to management, while statutory audit reports to shareholders or regulatory authorities.
Examples of internal audit activities include assessing internal controls, reviewing financial processes, and identifying areas for operational improvement.

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