Difference between internal and external audit

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Internal audit is conducted by internal employees to assess and improve internal controls, while external audit is conducted by independent third parties to provide an opinion on financial statements.

Internal audit is performed by employees within the organization, while external audit is conducted by independent auditors outside the organization.
Internal audit focuses on evaluating and improving internal controls and processes, while external audit focuses on providing an opinion on the accuracy and fairness of financial statements.
Internal audit reports to management and the board of directors, while external audit reports to shareholders and regulatory authorities.
Examples of internal audit activities include risk assessment, compliance testing, and operational audits, while external audit activities include testing financial transactions, verifying account balances, and issuing audit opinions.

Difference between internal and external audit

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