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Internal vs. External Auditors

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Internal vs. External Auditors

While internal auditors and external auditors should have complementary interests and goals, there are differences in their scope of work. For this discussion, explore the advantages and disadvantages of selecting outside independent auditors versus internal auditors for various attestation work. Discuss ways in which internal and external auditors could coordinate and work together. What other factors, if any, have an effect on the decision to outsource various attestation work? Consider issues such as sample size, audit evidence, time of year for audit, and the political environment.

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Internal Vs. External Auditors
Auditing is a very important part of a company's on going success. Companies utilize both internal and external auditors for different reasons all together. Both processes are very important to a company's success. This being said, what are the differences between internal and external auditors, and when should they be used?

The Comparison
The objective of an internal auditor is to promote sound risk management for a company, and to promote internal controls that will help the company as they continue operations. The goal of the external auditor is to test transactions that form the basis of the financial statement; they make sure that accounts are true and fair. The governance of ...

Solution Summary

This is a 439 word comparative of internal and external auditors. It outlines the scope of work each perform and gives insight to their value to an organization. This solution has 1 reference and compares and contrasts auditors, as well as, shows how they work together.

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Internal Audit Management: Manual vs electronic systems, outsourcing, independence

Support the answers with quotes from scholars' publications and other articles. Express your opinion on the subject of the question in a separate paragraph that should be titled 'My Opinion'.

1. Internal control elements vary in their design and application under the manual systems versus the electronic systems. List, describe, compare, contrast, and argue five main different examples of those control elements.

2. The literatures have discussed the pros and cons for outsourcing internal audit. List at least 3 reasons for, and 3 reasons against outsourcing of internal audit. Express your opinion in a separate paragraph.

3. A number of scholars argue that internal auditors and the audit organization must be independent. Others stated that the auditors and the organization are integral part of the company and achieving independence is impossible; consequently the internal audit function is not as effective as the external audit function. Discuss the above statements and express and support your opinion.

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