What is the primary difference between internal and external auditors?
A)the methodology used to conduct financial statement audits
B)the level of competence required
C)the parties to whom the auditor is responsible
D)the level of objectivity required

Question

Quizplus · Accepted Answer

The primary difference between internal and external auditors is the parties to whom they are responsible. Internal auditors are responsible to management and the board of directors of the organization, while external auditors are responsible to shareholders or stakeholders outside of the organization. Internal auditors focus on risk management, internal controls, and compliance with policies and procedures, while external auditors focus on financial statement audits and determining whether the financial statements are fairly presented in accordance with accounting standards. The methodology, competence, and objectivity required may differ for internal and external auditors, but these are not the primary differences between the two types of auditors.

What Is the Primary Difference Between Internal and External Auditors