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Answer

As the name signifies, internal audit is done internally i.e. done by the company"s employees where the company has got sufficient and experienced workforce. Otherwise, they appoint chartered accountant firm for doing the internal audit.but in the case of an external audit the entire audit is done by the outside people i.e.chartered accountant firms and the companies employee cannot do it.

Answer

Two major areas of difference are as follows-

  • The main aim of internal audit is to ensure that books are prepared in line with the policies of the company and that the existence of errors or fraud are omitted. However, main aim of external audit is to get the accounts prepared checked by external agency (or experts) to confirm the working of internal auditors and rule out limitation of self-review.
  • There is no reporting requirement by law of internal audit and may or may not be applicable on companies, thus ruling out the requirement of mandatory qualification of auditors. However, external audit is mandatory for companies and an auditor's report is to be obtained by the companies, and is to be done by Chartered Accountant (or any other authorised person, such as secretarial audit by Company Secretary) only.
Answer
Internal auditor is appointed by the BOD's whereas External is appointed by the shareholders.Internal Audit is not mandatory whereas the external audit is mandatory.
Answer
Following difference between Internal Auditor(IR) and External Auditor(ER): 1) IR appointment by Management where ER appointment by Shareholder/owner. 2) IR may be CA or CMA/any person where ER only A CA as ICAI act,1949 3)IR report to Management where ER report to Shareholder/owners . 4) IR may comply all relevant AS/SA Where ER shall comply all relevant AS/SA 5) IR maintain lower independent where ER require fully Independent. 6) ER always responsible for Audit report even he give report on the basis of IR report.
Answer
Auditor-Intern Audit is conducted by person who may or may not be a Chartered Accountant. Statutory Audit is conducted only by a qualified Chartered Accountant. Purpose - Internal audit is required by Management of the conpany to keep check on internal control and functioning of the company. Statutory audit is required by Law for the purpose of reporting on true and fair view of statw of affairs of the company. Reporting Internal Auditor reports to management Statury Auditor reports to shareholders and other concerned persons like creditors, Government etc.
Answer

Simplyfing the answer Internal Audit is done by the Employees of the organisation and the Extrenal auditing by a

CA ( Individual or a Firm) .

Usually Internal audit is done to make sure their is no negligence on the part of the Business in maintaining the proper books of accounts 

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