Firstly, what are the different between internal auditor and external auditor? Internal auditor is work within an organisations, which means they are apart of employee for the company. External auditor are independent of the organisations they are auditing, which means they are an outsider not an employee of the company.
In additional, internal auditors they can be in a common accounting background but they also can came form another background. External auditors they are outside firm of accountants who are registered auditors. Besides that, responsibility between the internal auditors and external auditors. Internal auditors, they responsible for the company's management but external auditors they responsible for the owner of the company and the shareholders.
Therefore, there are the different between internal auditor and external auditors when they are appointed. Internal auditors are appointed by the management or board of director, external auditors are appointed by the shareholders. Moreover, the purpose of the internal auditors and external auditors are internal auditors are helping the business manage its risk and external auditors are prepared the annual reports once a year with the legal requirements.
Furthermore, there are the between who are the person auditor report to. Usually, internal auditors are report internally. They report to the board of director or the audit committee. External auditors they report to the shareholders only.
Lastly, internal auditors performs a variety of review and assessments, providing the important information about the operation of the business. External auditors are providing the independent opinion on the company's financial statements.
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