External and internal auditors review corporate processes and controls, ensuring such controls conform to regulatory guidelines, industry practices and professional standards. A bachelor's degree in auditing or accounting is usually needed for an audit position.
Internal Audit Defined
Internal audits help a firm ensure that operating processes and controls comply with generally accepted auditing standards, top leadership's recommendations and human resources policies. An internal auditor also ensures that employees abide by government regulations when performing duties.
Internal audit activities play a significant role in business risk-management processes. They usually help top leadership identify, measure and monitor risks inherent in corporate activities in the short and long terms.
External Audit Defined
An external auditor reviews the operations of a company at the end of each year and ensures that internal processes conform to regulatory directives. Such directives include rules the Securities Exchange Commission promulgates on a regular basis.
External audit activities help investors and regulators ensure that a company's financial statements are accurate and complete. A complete set of accounting reports includes a balance sheet, statement of profit and loss, statement of cash flows and statement of retained earnings.
Internal Audit Vs. External Audit
Internal audit procedures are distinct from external audit activities, but there are instances in which they interrelate. For example, an external auditor may use the work of an internal auditor when reviewing an area or corporate process.
- Photo Credit accounts image by Alexey Klementiev from Fotolia.com
The Relationship Between Internal & External Audit
The Relationship Between Internal & External Audit. The word audit means to examine something critically, ... The Differences Between an Auditor &...
Relationship Between Self-Efficacy & Achievement Motivation
Extensive external motivation strategies are unnecessary since your internal motivational level to ... Difference Between Motivation ... Performance Audit Vs.
The Differences Between an Auditor & an Accountant
The Differences Between an Auditor & an Accountant. Auditors and accountants work in different areas ... What Is the Difference Between an...
Financial Auditing of Schools
Internal Audit Vs. External Audit. An audit is an inspection to determine whether a company is compliant with a set of governing...
Internal & External Business Communication
The main differences between internal and external company communications are the content and the ... What Is the Difference Between an Internal...
What Is an External Audit?
Why Should a Company Have an Internal & External Audit System? Audits are an accounting function companies use ... What Is the...
How to Prepare an Audit Plan
Internal auditors and external reviewers ... The Institute of Internal Auditors requires that the chief audit executive establish risk-based plans that drive...
What Is Financial Auditing?
Internal Financial Audit Procedures. An internal audit is a financial assessment of a company's accounting operations and internal controls.
What Are the Advantages of an External Audit?
What Is the Difference Between an Internal Audit & External Audit? Comments. nycrepublican99 Oct 28, 2009. ... The Relationship Between Internal &...
What Is the Difference Between Auditing & Assurance?
What Is the Difference Between Auditing & Assurance?. ... What Is the Difference Between an Internal Audit & External Audit? ... The...
Types of Auditors
External auditors do the same sort of document checking and analysis, ... What Is the Difference Between an Internal Audit & External...