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  • INTERVIEW QUESTIONS AUDIT DETAILS
    Question :
    Explain The Difference Between Internal Audit And External Audit?
    Category Audit Interview Questions
    Rating (0.4) By 1834 users
    Added on 7/22/2010
    Views 1488
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    Answers:

    The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.

    External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.



    The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.
    External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.



    Posted by: Zeba    

    Contact Zeba Contact Zeba

    internal audit is done by C.A.
    and External Audit is Compulsory Audit Done by C.A.



    Posted by: bobby da don    

    Contact bobby da don Contact bobby da don

    Internal audit is a function that, although operating independently from other departments and reports directly to the audit committee, resides within an organisation (i.e. they are company employees). It is responsible for performing audits (both financial and non-financial) within a wide range of areas within a business, as directed by the annual audit plan. Internal audit look at key risks facing the business and what is being done to manage those risks effectively, to help the organisation achieve its objectives. For example, they may look at risks to the company?s reputation such as the use of cheap labour in foreign countries, or strategic risks such as producing too many products in comparison to resources available etc.

    External audit is an independent body which resides outside of the organisation which it is auditing. They are focused on the financial accounts or risks associated with finance and are appointed by the company shareholders. The main responsibility of external audit is to perform the annual statutory audit of the financial accounts, providing an opinion on whether they are a true and fair reflection of the company?s financial position. As part of this, external auditors often examine and evaluate internal controls put in place to manage the risks which could affect the financial accounts, to determine if they are working as intended.



    Posted by: ALPANA    

    Contact ALPANA Contact ALPANA

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