2006-09-12 03:56:40 · 4 answers · asked by darius1914 1 in Business & Finance ➔ Corporations
The internal audit is, as its name suggested, conducted by the company's own employees to examine and verify its performance. It is especially important to large multi-branch, multi regional operations. Remember what Reagan said "Trust but verify"?
The external audit is conducted by outside auditors who has no ties to the company other than being hired to review what the internal company staff has done. Large companies routinely do that to make sure top management and the board is receiving accurate information. This is especially important to publicly traded companies. It lends credibility to information released to the stock exchanges and to its shareholders. Unfortunately, it still does not guarantee the information is correct. Remember ENRON?
2006-09-12 04:31:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
An internal audit is completed by employees of the company being audited. (There are some formal and informal types of audits.) An external audit means that an outside company will perform the audit.
2006-09-13 16:57:26 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
Internal audit is done by CPAs internal to the company, probably within the CFO's office. Results would be disseminated in the company, but not outside. External audits are completed by CPAs outside of the company (outside firm).
2006-09-12 03:59:50 · answer #3 · answered by Robin A. 3 · 0⤊ 0⤋
None they will get you bad.
2006-09-12 04:47:44 · answer #4 · answered by pirateron 5 · 0⤊ 0⤋