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.