AC503 Unit 1 discussion

Internal auditors are normally employees within an organization who evaluate the policies and procedures put into place by management to determine their effectiveness, efficiency, and adequacy within the company. The internal auditor is not connected with other departments and they mainly deal with the financial and operational activities of the corporation.

External auditors are independent auditors who are hired by an outside corporation to examine their financial statements and financial records in an effort to detect fraudulent activities within a corporation. The main difference between internal and external auditors is the reason behind their audit. Internal auditors look for fraud and misstatements within the financial records of a third party company whereas internal auditors check for the overall effectiveness and efficiency of management’s internal controls and processes. Internal auditors work for the company’s management team where external auditors work independently for the company
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