Difference Between Internal And External Audit – Hello friends, today we are going to share difference between External Audit and Internal Audit.
Difference Between Internal And External Audit
|Sr. No.||Basis||Internal Audit||External Audit|
|1||Qualification Of Auditor||Any person who has a knowledge of Accountancy can function as an Internal Auditor.||Only a Chartered Accountant or Certified Auditor can function as an External Auditor.|
|2||Appointment||The auditor is appointed by the management as an employee, and can only work for the organisation employing him.||The auditor is appointed (or reappointed) every year by the management, and is fee to work for other organisations.|
|3||Objective||The objective is to eliminate the in accuracies in accounts and stream line the accounting procedures.||The objective is to get the accounts examined for their relevance and correctness.|
|4||Freedom Of Work||The internal auditor enjoys no such freedom and has to work according to the instructions of the client.||The external auditor enjoys complete freedom of work.|
|5||Position||He is appointed by the management and works as per their instructions.||The external auditor is an independent and unbiased person and is free from the influence of the owners and the management.|
|6||Importance Of Work||The work of the internal auditor is relevant only for the owner of the business.||The work of the external auditor is important for the client, share holders, public and the government.|
|7||Scope||The scope of the auditor is predetermined in the case of a company and in other cases depends upon the contract. The scope of the audit cannot be altered.||The auditor gives his final report at the end of the accounting year.|
|8||Suggestions For Improvement||It is the duty of the internal auditor to give suggestions for improving the internal check system of the organisation apart from examining the accounts.||The external auditor is not responsible for giving suggestions about improving the method of working of the organisation.|
You may also read –
Disclaimer – Friends, https://www.pdffiles.in is designed for education and education sector only and does not have own Books / Notes / PDF / and ALL Material. We only provide Link and Material already available on the Internet. You can mail us on [email protected] You can contact us on whatsapp or facebook also. Search PDF Files on facebook to connect with us.