Difference between internal and statutory audit

Question

Accepted Answer

Internal audit is conducted by company's own employees while statutory audit is conducted by external auditors as per legal requirements.

Internal audit is voluntary while statutory audit is mandatory.
Internal audit is conducted to assess and improve internal controls and processes while statutory audit is conducted to ensure compliance with legal requirements.
Internal audit is conducted throughout the year while statutory audit is conducted once a year.
Internal audit reports are shared with management while statutory audit reports are shared with shareholders and regulatory authorities.
Examples of internal audit include operational audit, compliance audit, and financial audit while statutory audit is limited to financial audit.

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