Difference Between External & Internal Audits

External audits

• Conducted by third-party auditors who are Chartered or Certified Accountants.
• Statutory requirement for certain organisations.
• Provides an assessment of the accuracy and reliability of a company’s financial statements.

Internal audits

• Conducted by employees of the organisation, usually an internal auditing department.
• Main focus on operations and systems, not financial records and accountancy.
• Legal requirement in a few special circumstances (Health Authorities, Universities, National and Local Government).
• Objective is to achieve Value-For-Money through efficiency, economy, and effectiveness.