Different definitions:
Internal audit is a consulting activity and an internal management function of an organization. External audit is a visa activity provided by an independent external institution.
Different goals:
The purpose of internal audit is to add value to the organization and improve its operational efficiency (management purpose); The purpose of external audit is to provide reasonable financial information for the organization legally, fairly and consistently.
Different scope of work:
The scope of internal audit covers all aspects of enterprise processes, including risk management, control and governance processes, while external audit only focuses on enterprise financial processes and internal controls related to financial information.
Different methods:
There are many methods of internal audit. According to the systematic and standardized methods, various methods should be adopted according to the specific situation of the organization, which may also include some procedures of external audit, but the premise is that the methods must be systematic and standardized. The method of external audit is only the procedure of auditing some statements.
Different customers:
The service object of internal audit is the board of directors, which is the extension and concretization of the management function of the board of directors; The service object of external audit is all relevant stakeholders.
Different application conditions:
There are no special requirements for internal auditors, and external auditors require college education or above and have more than 4 years of work experience.
merits and demerits
The internal auditor is an internal employee of the enterprise, the certificate is issued by the certification company, and the salary is not paid by the certification company.
The external auditor goes to each enterprise for auditing to confirm whether the audited enterprise has the qualification to ensure the production of qualified products, and reports it to his own certification company for certification. The internal auditor is to ensure the effective operation of the internal quality system of his own enterprise, supervise the operation of his own company part-time and improve the management system in time.
The external auditor shall take the national examination and obtain the qualification certificate issued. Internal auditors do not need a unified examination, and the cost is much lower. It is also easier to pass. Obtaining a certificate is relatively easy.