What are the similarities and differences between internal and external audits?

Similarities between internal and external audits

  •  Both functions require the auditors to adhere to the international standards on auditing.
  •  Both are carried out by competent auditors
  • Both are interested in evaluating and testing the effective operations of the internal control system
  •  Both functions give recommendations to management on ways of improving the internal control system. The external auditor achieves this through the management letter, which is addressed to management.


Area of difference Internal Auditor External auditor
1. Scope Determined


by Determined by statute
2. Approach To   ensure                            accounting system is efficient and providing       management with accurate                         information To satisfy himself that the financial statements to be presented        to          the shareholders   portray     a

true and fair view

3. Responsibility Report to management Report shareholders




the the

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