Internal audit
This query is : Resolved
26 July 2011
Sir,
Is there any law where powers of internal auditor is defined. what are the rights of internal auditor while conducting the audit. In what manner he differ from statutory auditor.
Is there any law where powers of internal auditor is defined. what are the rights of internal auditor while conducting the audit. In what manner he differ from statutory auditor.
26 July 2011
Dear Ashish,
Scope of Statutory audit is defined by law and consequently, the rights and liabilities are also defined in law governing the audit.
Scope of internal audit is not defined by law but by management. Hence, the rights and liabilities also emerge from the scope of internal audit. For e.g., if the management wants to do internal audit of stores department, you, as an internal auditor, will not be authorised to verify the cash payments or bank payments as the same is outside your scope of audit.
The objective of internal audit also depends upon what the management wants from the work of internal auditor.
Scope of Statutory audit is defined by law and consequently, the rights and liabilities are also defined in law governing the audit.
Scope of internal audit is not defined by law but by management. Hence, the rights and liabilities also emerge from the scope of internal audit. For e.g., if the management wants to do internal audit of stores department, you, as an internal auditor, will not be authorised to verify the cash payments or bank payments as the same is outside your scope of audit.
The objective of internal audit also depends upon what the management wants from the work of internal auditor.
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