Basically, the working or functioning of the internal auditor and external always work together. However, their purposes or the motive of their work might be different from each other. Moreover, internal auditors also take care and ensure that the work does not conflict with each other and must ensure to contribute to the effective governance of the business.
All about the Internal Auditors
Internal auditors always tend to take a holistic approach to view the organizational governance, risk, as well as all the control systems, which in more simple words are known as primary and non financial information. It takes care of the legal matters as well as compliance in the business.
All about the External auditors
On the other hand, all the external auditors are concerned or tend to take decisions as per the accuracy of the business accounts and majorly with respect to the financial condition of the business rather than non financial. It also takes care of the legal matters as well as compliance in the business. It has been said that the external auditors help the internal auditors in taking better decisions and preparing a better audit.
No matter what the difference between internal and external auditor is. But they are both complementary to each other as they help each other to take a better and more valuable decision for the company.
However, the major or most common difference between internal and external auditor is that internal auditors are hired by the company and are considered to be the employees of the company. On the other hand, external auditors are just auditors that are not directly hired or employed by the business.
What is the main purpose of auditing in the business regarding financial as well as non financial matters.
In general language we can say that be it the internal auditor or be it the external auditor, auditors are there to enhance the performance of the business as well as minimize the risk of the business. However, all the External audits do not have any kind of the responsibility to evaluate all the GRC activities or any kind of improvements.
All the internal auditors are tend to take the fair as well as be perfectly holistical to make and take the decisions strategically by following all the objectives as well as minimizing the risks for the business and ensuring the safety of the financial matters.