Difference Between Internal Audit And Statutory Audit – Hello friends, today we are going to share difference between Statutory Audit and Internal Audit.
Difference Between Internal Audit And Statutory Audit
|Sr. No.||Basis||Internal Audit||Statutory Audit|
|1||Nature||Internal audit is a part of the internal system present in the organisation.||Statutory audit is an independent examination.|
|2||Compulsion||Getting the internal audit done depends upon the wishes of the company, i.e. it is not compulsory.||Every company has to get a statutory audit done, i.e., it is compulsory|
|3||Appointment||The internal auditor is appointed by the management.||The statutory auditor is appointed by the company or the government.|
|4||Object||The main objective of internal audit is the detection of frauds and errors and making the internal control more effective.||The main objective of Statutory Audit is to give a report to the shareholders regarding the correctness, accuracy and regularity of the accounts.|
|5||Duration||Internal audit is a kind of continuous audit||Statutory audit is done only after the final accounts have been prepared.|
|6||Qualification||The internal auditor need not have any special qualification.||The statutory auditor should posses the qualifications specified in section 141 of the Companies Act.|
|7||Scope||The scope and responsibility of the internal auditor is determined by the management.||The scope and responsibility of the statutory auditor is determined by the concerned legal enactment.|
|8||Status||Internal auditor is an employee of the organisation.||The statutory auditor is an independent professional.|
|9||Suggestions||The internal auditor gives valuable suggestions to the management to make the business more efficient and to prevent it from dissolution.||The statutory auditor normally does not give any such suggestions.|
|10||Report||There is no question of the internal auditor submitting any report.||On completion of the statutory audit the auditor issues a report to the shareholders.|
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