Comparison between Internal Audit and External
conducted internally i.e., by the management to ensure that the company
complies with the policies, procedures and principles.
person who conducts internal audit is called as Internal Auditor, who is
appointed by the management. The scope of work, powers and duties of internal
auditor are determined by the management.
Auditor need not be a qualified Chartered Accountant and is remunerated in the
form of salary as he is an employee of the company.
auditor has to submit an Internal Audit report to the management.
conducted externally i.e., by the shareholders to examine the accuracy of the
books of accounts, records and financial statements.
person who conducts external audit is called as Statutory or External Auditor
who is appointed by the shareholders of the company. The scope of work, powers
and duties of statutory auditor are determined by the Companies Act.
Auditor should be a qualified Chartered Accountant and is remunerated in the
form of audit fees as he is an independent person.
auditor submits Statutory Audit report to the shareholders of the company.