Difference between internal and external audit

Question

Accepted Answer

Internal audit is done by company employees while external audit is done by independent auditors.

Internal audit is conducted by employees of the company while external audit is conducted by independent auditors.
Internal audit is a continuous process while external audit is conducted periodically.
Internal audit is focused on evaluating and improving the effectiveness of internal controls while external audit is focused on providing an independent opinion on the financial statements.
Internal audit is a management tool while external audit is a statutory requirement.
Internal audit reports to the management while external audit reports to the shareholders or regulatory bodies.

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