Question

How does the work of an Internal Auditor differ from that of an External Auditor (Public Accountant)? Identify a minimum of two differences and elaborate. How is the work similar?

Answer 1

Difference between ons of differen Internal auditor and external Auditor | External Auditor, uuditor Internal 1. Appointment. The internal auditor is The external auditor of auditor appointed by the management is generally appointed of the concern. by the share holders I (owners) of the concern. 2. Status of the. He has no independent. the external auditor status as he ris rusaally Iris independent and na paid employee of the impartial person gnat undertaking paid employee of the Company. 13. Object The main object of internal In case of external auditor eft auditasis to examine hohe these plans and a procedures as decided error and fraud, by the management are certification of final properly carried out accounts of the concern ris the main object. Pervasive The Internal anditor -ness has to examine all of wook to the transactions of the business atheroughly to examine their genune external the statutory auditor may examine transactions thoroughly oro may adopt test checking, 0 mess and prosperity 5. Rendering the internal auditor can of not asted specifically, ale render advice to the management as to whow for any adaph. Sugestie's to remove the probable the auditor has no obligation draue backs.or wastage to render service to the and instituti Sound management management system. eds the object of external audit 5. Report the internal audit is not appointed by shareholders. us mainly to protect the interest So he is not required to of the shareholders, the is Submit report to them, required to submit the audit report to them .

Ecrunize the over all inte Similarity in the work of Internal auditor and external canditor. Detection of error and frauds.am in accounts and determination of propriety of the Internal check for prevention of errors and brands are the cheif alms of beth system. Both the systems adopt the same method of examining the accounting vrecords and Statement, reviene of the financial matters verification of assets and liabilities propriety of internal check system etc. 1