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.
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.
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.)
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