Internal and External Auditor

Internal Auditor
Internal audit is operating independently from other departments and reports directly to the audit committee, resides within an organization (i.e. they are company employees)

It is responsible for performing audits (both financial and non-financial) within a wide range of areas within a business, as directed by the annual audit plan.

Internal audit look at risks facing the business and what is being done to manage those risks effectively, to help the organization achieve its objectives.


External Auditor
External audit is an independent body which resides outside of the organization which it is auditing.

They are focused on the financial accounts or risks associated with finance and are appointed by the company shareholders.

The main responsibility of external audit is to perform the annual lawful audit of the financial accounts, providing an opinion on whether they are a true and fair reflection of the company’s financial position.

External auditors often examine and evaluate internal controls put in place to manage the risks which could affect the financial accounts, to determine if they are working as intended.

Introduction

My name is Angie Loh Sook Mei, I study accounting. The reason i chose accounting because i like to know and understand accounting knowledge its makes me interested in it. In my opinion about auditing from my understanding is an entity prepare balance sheet to portray its financial positions. It also prepares profit & loss account to disclose the operating results of the period covered in the statement. These financial statements are submitted to the auditor for his checking and comment. The auditor checks respect. The auditor express his opinion about the quality of the financial statements concerning proper discloses of facts in the financial statements and the truth and fairness of the financial position and operating results of the enterprise. As disclosed in the balance sheet and profit and loss account respectively.