The fundamental difference between internal and external auditing is that
A)internal auditors represent the interests of the organization and external auditors represent outsiders
B)internal auditors perform IT audits and external auditors perform financial statement audits
C)internal auditors focus on financial statement audits and external auditors focus on operational audits and financial statement audits
D)external auditors assist internal auditors but internal auditors cannot assist external auditors

Question

Quizplus · Accepted Answer

The fundamental difference between internal and external auditing is that internal auditors represent the interests of the organization they work for, while external auditors represent the interests of third-party stakeholders such as investors, lenders, and regulators. This means that internal auditors are employed by the organization they audit, while external auditors are independent practitioners hired by external parties to examine the organization's financial statements or other aspects of its operations. While there may be some overlap in their duties and responsibilities, their primary focus and objectives are distinct.

The Fundamental Difference Between Internal and External Auditing Is That