What are the job responsibilities of the external auditors and how it is different from internal auditors?
- What are the job responsibilities of the external auditors and how it is different from internal auditors?
1.External auditors generally review the financial statements through out the year .
2.External auditors will give opinion on the financial statements , whether the financial statements will give true and fair view or not. while internal auditor do not give any opinion.
3.If the financial statements are misappropriated by fraud or error than external auditors will give adverse opinion in the audit report. while internal auditor will rectify those mistakes.
4.External auditors will be appointed by the shareholders , and reported to the shareholders only.
5.External auditors will check audit evidence based on sampling.
6.External auditors use different types of sampling methods to collect evidence from the financial statements.
7.External auditor is independent from the company, while the internal auditor will be appointed from the company also.
8.External audit report will useful to all stake holders. while internal audit report used inside the company only.
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