Difference between internal and Statutory audit

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Internal audit is conducted by the company itself to assess internal controls and operations, while statutory audit is mandated by law to ensure compliance with financial reporting standards.

Internal audit is conducted by internal auditors who are employees of the company.
Statutory audit is conducted by external auditors who are independent of the company.
Internal audit focuses on evaluating and improving internal controls, risk management, and operational efficiency.
Statutory audit focuses on verifying the accuracy and fairness of financial statements and ensuring compliance with legal and regulatory requirements.
Internal audit is not mandatory and is performed at the discretion of the company's management.
Statutory audit is mandatory and is required by law for certain types of organizations.
Internal audit reports are primarily used by management to identify areas for improvement.
Statutory audit reports are used by stakeholders such as shareholders, regulators, and lenders to assess the financial health and compliance of the company.
Examples of internal audit activities include reviewing internal policies and procedures, conducting risk assessments, and performing operational audits.
Examples of statutory audit activities include examining financial records, testing internal controls, and issuing an audit opinion on the financial statements.

Difference between internal and Statutory audit

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