Internal Audit vs External Audit

This video discusses the difference between an internal auditor and an external auditor. The external auditor is not an employee of the company and is engaged to provide an opinion as to whether the company's financial statements are free of material misstatements. For audits of publicly-traded companies, the external auditor must also report whether the company's internal controls have any material weaknesses.
Internal auditors, on the other hands, may be employees of the firm being audited and have a role that closely resembles that of a consultant. Internal auditors assess the company's risk, identify areas of improvement, and advise management. Internal auditors also examine the company's internal controls by ensuring that the company is complying with all laws and regulations, that operations are efficient and cost effective, that the financial reporting process is working as it should, and that fraud is not being committed by the company's employees.-
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[@natt7748]

Thank you for your explanation! I have an internship interview for internal audit, but I haven't even taking an auditing course yet.

[@jeromeberry5392]

OMG YOU HAVE JUST FINISHED MY ASSIGNMENT. THANK YOU

[@alexiashengnan6950]

This is a great video, very informative

[@lauressan.4658]

The key and most important aspect of internal auditing is that the internal auditor should report to the company's board of directors or audit committee, independent of senior management. Additionally, internal auditors follow the International Standards for the Professional Practice of Internal Auditing. Internal auditors consider ALL the risks (and opportunities) of the company, not just financial statements. They help the organization improve governance, risk management, and controls processes.

[@lovelymanlangit8516]

Thank you for this short lecture! I really learned a lot😊

[@Edspira]

You're very welcome!

[@AishHumairaa]

thanks !

[@abdulahmahasees4595]

Thank you, you are the best

[@Edspira]

You're welcome!

[@MyFinancialFocus]

So this is like financial accounting vs managerial accounting.

[@qaseemwaseem7877]

Can both external and internal auditors report directly to shareholders or can they to audit commute ?

[@lauressan.4658]

Internal auditors issue their reports to the audit committee or the board. If the organization is in the public sector (government), then the reports might be public by law. Otherwise, they are not public.

[@htdiah9587]

sir, please change your background to white maybe, bcs i can see it if it is black :(