what is the exact work done by internal audit and statutory audit in company.who appoint internal auditor and statutory auditor.,Explian in brifely manner.........
4 Replies
Anurag Gupta
(STUDENT)
(103 Points)
Replied 14 December 2011
internal auditOR APPOINTED by MANAGEMENT
STAT AUDITOR APPOINTED BY BOD
Abhijeet Deshpande
(Co-Founder & Manager @ Tax-Yantra)
(1171 Points)
Replied 14 December 2011
Internal Audit is basically the Process audit conducted by chartereds on the appointment by the management.
In internal audit we deal with the processes, policies, compliances and even the controls that are set by the management within the company. This is the way of management to understand internal working of the company.
On the other hand, Stat Audit may be called as the financial & compliance audit where auditors are appointed by the shareholders. this audit is conducted to know the financial position of the company as on the end of certain period.
(Guest)
Let me correct you Mr Abhijeet,professional qulaification of a internal auditor is not described yet, any employee of the same organisation who the management think is capable enough can be appointed as a internal auditor.If he/she hold other accounting certifications it will be more beneficial.
Internal audit has much broader scope than statuatory audit as in the internal auditor is responsible for the checking the overall functions of the company more importantly ""Internal controls"".
Abhijeet Deshpande
(Co-Founder & Manager @ Tax-Yantra)
(1171 Points)
Replied 15 December 2011
Agreed with Farheen. Internal auditor may or may not be a CA. A person part of the company may also be appointed as an internal auditor.
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