Question

How Does The Internal Audit Differ From An External Audit?

Answer 1

There are multiple differences between the internal audit and external audit functions, which are as follows:

Internal auditors are company employees, while external auditors work for an outside audit firm.

Internal auditors are hired by the company, while external auditors are appointed by a shareholder vote.

Internal auditors do not have to be CPAs, while a CPA must direct the activities of the external auditors.

Internal auditors are responsible to management, while external auditors are responsible to the shareholders.

Internal auditors can issue their findings in any type of report format, while external auditors must use specific formats for their audit