What is difference between internal Audit and external audit.

Question

Accepted Answer

Internal audit is conducted by employees of the organization, while external audit is conducted by independent professionals.

Internal audit is performed by employees of the organization, while external audit is performed by independent professionals.
Internal audit focuses on evaluating and improving internal controls, risk management, and operational efficiency within the organization.
External audit focuses on providing an independent opinion on the accuracy and fairness of the organization's financial statements.
Internal audit is a continuous process and is conducted throughout the year, while external audit is typically conducted annually.
Internal audit reports directly to the management of the organization, while external audit reports to shareholders or regulatory bodies.
Internal audit helps in identifying and mitigating internal risks, while external audit helps in ensuring compliance with laws and regulations.
Example: Internal audit may review the effectiveness of internal control systems, while external audit may verify the accuracy of financial statements.
Example: Internal audit may recommend process improvements to enhance operational efficiency, while external audit may provide assurance to stakeholders.
Example: Internal audit may assess the adequacy of risk management practices, while external audit may provide an unbiased assessment of financial performance.

Accepted Answer

Internal auditors will examine issues related to company business practices and risks, while external auditors examine the financial records and issue an opinion regarding the financial statements of the company. Internal audits are conducted throughout the year, while external auditors conduct a single annual audit.

Accepted Answer

Internal Audit is company based Audit and external audit RBI based Audit.

What is difference between internal Audit and external audit.

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