What are the differences between internal and external audits?

What are the differences between internal and external audits?

Internal audits are conducted by an organization's own staff to assess internal controls, while external audits are performed by independent auditors to provide an objective opinion on financial statements.

Can you explain the purpose of each type of audit?

Sure! Internal audits aim to improve operations and compliance, while external audits focus on verifying the accuracy of financial reports for stakeholders.

Which type of audit is more important?

Both are important but serve different purposes. Internal audits help in risk management and operational efficiency, while external audits ensure transparency and trust for investors.

How often should internal audits be conducted?

Internal audits should be conducted regularly, often annually or semi-annually, depending on the organization's size and risk factors.