Question

Assignment:

Please Answer the question below. It should show your analysis and critical thinking and is generally 2-3 paragraphs.

1: List and describe similarities and differences between the internal and external auditor function.

Answer 1

Internal auditor The person who audits the firm intemally as they are responsible to the management They are hired by the company who work as employee of the fim. They examine the issues related to the company. The auditing is done throughout the year External auditor The person who audits from outside the firm is known as extemal auditor. They are responsible to the stakeholders. They are hired by the stakeholder vote. They examine the issues iin the financial records. The auditing is done only once in a ar Similarities between internal auditor function and external auditor function: The intermal auditor and extemal are independent in doing their operation. Both the auditor function generates the report and performing auditing. The cost of auditing are same for both intemal and extemal audit. They maintain high equality works that provides the resports in a more trust worthy and reliable. Difference between internal auditor function and external auditor function: The responsibilities of intemal auditing function defined in the audit charter are whereas the extemal audit is defined in ISA 200. The intemal audit code of ethic is generally set in the audit charter or the policies whereas the extemal auditor function code of ethics is defined by IFAC. The scope of intemal audit is detemined by the audit committee whereas the scope of extemal audit is based on service request and availability of services in the firm. The qualification of intemal audit function does required CPA whereas extemal audit function requires at least one CPA The not standard use of intemal audit is as per the intemal manual where the extemal audit is

formulated by IFAC which is kin adoption with Intemaltional standard on Auditing (ISA)