key Differences Between Internal Auditors and External Auditors
I know you may even be wondering if there was a difference at all. Yes there is a very huge difference. Before we get into the differences, let us first of all look at who they both are, and what they have in common.
An internal auditor is a professional whose primary function is to carry out assurance and consulting activities for a company internally. An external auditor, is a professional, who verifies and and certifies financial statements of a company. This is very basic. It is a lot more complex than it sounds. These are both auditors whose main aim is to help the company improve its operations and evaluate company performance. They both work very independently from company management without undue influence. They both need a lot of objectivity.
I also want to let you know that both internal and external auditors have are not fraud investigation experts. This means that they are not trained to investigate fraud. This is a secondary function
Key Differences
- Internal Auditors are company employees and so work for the company; while external auditors are independent contractors who are not company employees.
- While Internal auditors can come from any field, say HR, marketing, Logistics and so on; external auditors must be accountants.
- Internal auditors have as primary functions, carrying out assurance and consulting engagements in the organization to improve operations of the company. On the other hand, external Auditors are primarily concerned with financial statements of the company.
I hope this article opened your mind. Do leave a comment, question, or something i may have missed out
Ngong George Fonyuy (Internal Auditor, Member of the IIA)
