The scope of the work under taken by the internal auditors is determined by the management while the extent of the work undertaken by statutory auditor arises from the responsibilities placed upon him by status. The approach of internal auditor is to satisfy that accounting information presented to management throughout the period is accurate and discloses material facts. On the other hand the approach of statutory auditor is governed by his duty to satisfy himself that the accounts to be presented to the shareholders give a true and correct view.
Internal auditors after completion of audit report to the management while statutory auditor reports to the shareholders. Internal auditor is directly responsible to the management but statutory auditor's responsibility is towards the shareholders. Internal auditor is an employee of the company and does not possess the independent of status while statutory auditor is not the employee of the company and has independent status. There is no prescribe qualification for the appointment of internal auditor but statutory auditor of a public limited company must be chartered accountant. The appointment of an internal auditor is made by management while statutory auditor id appointed by the shareholders.
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