What are the differences between internal and external auditors?

What are the differences between internal and external auditors?

Internal auditors work within an organization to evaluate its processes, while external auditors are independent and assess financial statements.

Can you explain the roles of each type of auditor?

Sure! Internal auditors focus on risk management and compliance, while external auditors verify the accuracy of financial reports.

Which type of auditor is more important for a company?

Both are important! Internal auditors help improve operations, while external auditors provide credibility to financial statements.

How often do companies need to hire external auditors?

Companies typically hire external auditors annually, especially if they are publicly traded or required by law.

What qualifications do external auditors need?

External auditors usually need a degree in accounting or finance and must be certified, such as a CPA (Certified Public Accountant).