PDF is available at end of this different table
Content
1. Difference in Tabular Form
2. Download PDF
3. Brief Difference
Difference Between Internal and External Audit in Tabular Form
| Basis For Comparison | Internal Audit | External Audit |
|---|---|---|
| 1. Meaning | An Internal Audit is a verification of a department or an organization done by the company’s auditing committee. This committee is part of an organization. | An external Audit is the verification of a department or an organization performed by an independent body. This is not a part of an organization. |
| 2. Objective | To review the financial statement, and routine activities and provides suggestions to improve. | To validate the material accuracy of financial reports provided by the organization. |
| 3. Audit conducted By | This audit is done by the auditing employees of the company. | This is done by a third party or Independent Accountant. |
| 4. Remuneration ( Payment ) | In this audit, employees get remuneration in form of salary | Independent accountant gets a fee or commission for auditing. |
| 5. Obligation to perform | Internal audit is not mandatory. Companies do this audit to review the company before the external audit. | External Audit is mandatory to perform by the Indian Companies Act, 1956. |
| 6. Period | Internal audit is a continuous process. | The external audit is done once a year. |
| 7. Auditor appointed by | The internal auditor is the employee of a company so it is appointed by the Management of a company. | An external auditor appointed by the shareholder |
| 8. Users | Internal audit reports are used by management | External audit reports are used by stakeholders such as investors, creditors, government, and lenders. |
| 9. Check and Opinion | The opinion is provided on the effectiveness of the operational activities of the organization. | The opinion is provided on the truthfulness and fairness of the financial statement of the company. |
Read More: Appointment of Audior (PPT is Available)
Download Difference between internal and external audit Pdf
Steps to Download
1. Double Click On Download
2. Close ad, if any opens
3. Then fill in the Email address to start downloading
4. If not start, then check your mail inbox. We have sent you.
Read more: Difference between Social Accounting and Social Auditing
Brief Difference Between Internal and External Audit
1. Meaning
An Internal Audit is a verification of an organization done by the company’s auditing committee. This committee is part of an organization. Basically, Internal auditors are company employees.
An External Audit is the verification of a department or an organization performed by an independent body. This is not a part of an organization. External auditors work for an outside audit firm i.e. Public accountant.
2. Objective
The objective of an Internal Audit is to review the financial statement, and routine activities and provides suggestions to improve.
The objective of an External Audit is to validate the material accuracy of financial reports provided by the organization.
3. Audit conducted By
Internal audit is done by the auditing employees of the company.
The external audit is done by a third party or Independent Accountant. The company invites a Chartered accountant to review the statement as it is mandatory by the government
4. Remuneration (Payment)
In this Internal audit, employees get remuneration in form of salary
In an external audit, an Independent accountant gets a fee or commission for auditing.
5. Obligation to perform
Internal audit is not mandatory. Companies do this audit to review the company before the external audit.
External Audit is mandatory to perform by the Indian Companies Act, 1956.
6. Period
Internal audit is a continuous process. A company always need to audit the company to improve the irregularity.
The external audit is done once a year.
7. Auditor appointed by
The internal auditor is the employee of a company so it is appointed by the Management of a company.
External auditor appointed by shareholder
8. Users
Internal audit reports are used by management
External audit reports are used by stakeholders such as investors, creditors, government, and lenders.
9. Check and Opinion
In the Internal Audit, The opinion is provided on the effectiveness of the operational activities of the organization.
In the external Audit, The opinion is provided on the truthfulness and fairness of the financial statement of the company.
_______________________________________________________________________________
Read More- How to get anything you want by doing Manifest
____________________________________________________________________________