Difference between statutory audit and internal audit

Question

Accepted Answer

Statutory audit is mandatory and conducted by external auditors while internal audit is voluntary and conducted by internal auditors.

Statutory audit is conducted to ensure compliance with legal and regulatory requirements while internal audit is conducted to evaluate and improve the effectiveness of internal controls.
Statutory audit is mandatory for all companies while internal audit is voluntary and can be conducted by the company itself or outsourced to a third party.
Statutory audit is conducted by external auditors who are independent of the company while internal audit is conducted by internal auditors who are employees of the company.
Examples of statutory audit include audit of financial statements, tax audit, and audit of compliance with laws and regulations. Examples of internal audit include audit of operational processes, risk management, and compliance with internal policies and procedures.

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