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Internal Auditing.2022
Internal Auditing.2022
Financial Auditing:
It involves many of the same concepts discussed under
external auditing. But they differ in several ways:
INTERNAL AUDITING: Role
E.g
Internal auditors do not audit periodic financial
statements, but tend to focus on specific financial issues
as directed by management.
Internal auditors reports do not follow a standardised
format. Their reports are normally uniquely composed
to fulfil the requirement of a particular assignment.
INTERNAL AUDITING
Operational Auditing:
Operational audit are primarily conducted to
indentify the causes of the problems or to enhance the
efficiency or effectiveness of operations (value for
money). In many organisations, internal auditors
spend most of their time performing operational
audits.
INTERNAL AND EXTERNAL AUDITING
Relationship of Internal and External Auditors:
Differences:
Internal auditors are responsible to management and
the board and it is focused on the operations of the
entire business.
External auditors are focused on the financial
statements and are responsible to users who rely on the
auditor to add credibility to those statements.
Internal Audit External Audit