How do internal and external auditors complement each other?

University / Undergraduate
Modified: 12th Jun 2020
Wordcount: 305 words

Disclaimer: This is an example of a student written assignment. Click here for sample essays written by our professional writers.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.ae.

Cite This

Question

How do internal and external auditors complement each other in their respective roles as they both strive to make a notable contribution to the discipline of corporate governance.

Answer

External shareholders are selected by the shareholders of a business. They must be independent from the business (i.e. from a different company), and also responsible to the owners of the company, as such they are free to scrutinise every aspect of a company’s accounts. On the other hand, internal auditors tend to be employees of a business. This means that the senior management team of a business is usually in control of the internal auditors. Internal auditors examine the risks facing the company and determine whether the company is managing these risks effectively and meet its strategic objectives. They are usually responsible for recommending improvements across the different departments. External auditors focus purely on financial accounts. They assess the risks of the accounts being materially misstated, in other words they assess whether the annual reports of the company give a true and fair view of the company’s position and ensure that they are prepared in line with the legal requirements. As can be seen, internal audit and external audit are two distinctive functions. However, they can complement each other as they seek to find and recommend ways to minimise the different risks facing a company. This helps to ensure the company is managing the business and financial risks well. Furthermore, the external auditors are there to ensure the company is preparing the financial accounts in accordance with the legal requirements. External auditors may also assess internal audit functions, when internal auditing is relevant to the external auditor’s risk assessment.

References

 

Cite This Work

To export a reference to this article please select a referencing style below:

Give Yourself The Academic Edge Today

  • On-time delivery or your money back
  • A fully qualified writer in your subject
  • In-depth proofreading by our Quality Control Team
  • 100% confidentiality, the work is never re-sold or published
  • Standard 7-day amendment period
  • A paper written to the standard ordered
  • A detailed plagiarism report
  • A comprehensive quality report
Discover more about our
Assignment Writing Service

Essay Writing
Service

AED558.00

Approximate costs for Undergraduate 2:2

1000 words

7 day delivery

Order An Essay Today

Delivered on-time or your money back

Reviews.io logo

1837 reviews

Get Academic Help Today!

Encrypted with a 256-bit secure payment provider