Internal Audit and Statutory Audit
This query is : Resolved
24 June 2008
1)How is Internal Audit different from Statutory Audit apart from the fact that the scope of internal audit is determined by management whereas statutory audit is done mainly to give his opinion on matters mentioned u/s 227 of companies Act.
2)Also please let me know how auditor’s approach changes in conducting the above two audits.
Kindly answer question wise.
Please keep the query open to enable other experts to express their view.
Thanks.
2)Also please let me know how auditor’s approach changes in conducting the above two audits.
Kindly answer question wise.
Please keep the query open to enable other experts to express their view.
Thanks.
24 June 2008
Internal audit is designed and developed by management....the scope & functions are limited to the terms of appointment
External audit....the scope is prescribed by companies ACt...
qn 2
Very simple if you are an internal auditor...just refer to you appointment order and job description statement...
External audit....the scope is prescribed by companies ACt...
qn 2
Very simple if you are an internal auditor...just refer to you appointment order and job description statement...
24 June 2008
Thanks for your views.
1)APART FROM - "SCOPE" is there any other difference between internal audit and external audit?
2)Normally the matters covered by Sec.227, and 227(1A),CARO are covered by the scope of internal audit.In such a case how is the approach of Internal Auditor differs from approach of Statutory Auditor?
Kindly answer question wise.
PLEASE keep the query open to enable other experts to express their view.
Thanks.
1)APART FROM - "SCOPE" is there any other difference between internal audit and external audit?
2)Normally the matters covered by Sec.227, and 227(1A),CARO are covered by the scope of internal audit.In such a case how is the approach of Internal Auditor differs from approach of Statutory Auditor?
Kindly answer question wise.
PLEASE keep the query open to enable other experts to express their view.
Thanks.
24 June 2008
1) usually in big corporates, external auditor don't perforrm detailed audit of day-to-day transactions and internal controls. mainly internal auditor do it. although these works are liability of external auditor also.
2) external auditor give report in a standard framework. whereas, there is no standard reporting system for internal audit. it depends on company requirement.
3) CARO requires companies to have appropriate internal audit system commensurate to its size. i believe it does not necesarily mean to have an outsider internal auditor. company may have a department of internal audit and internal auditor may be on its payroll.
(i am not 100% sure on third point, opinion of other experts require.)
2) external auditor give report in a standard framework. whereas, there is no standard reporting system for internal audit. it depends on company requirement.
3) CARO requires companies to have appropriate internal audit system commensurate to its size. i believe it does not necesarily mean to have an outsider internal auditor. company may have a department of internal audit and internal auditor may be on its payroll.
(i am not 100% sure on third point, opinion of other experts require.)
24 June 2008
open
05 October 2008
External auditor can arrange his work depending upon the scope content and extent of coverage of internal audit.
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