Five (5) Differences Between External and Internal Audit

Audit is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. (American Accounting Association)

Both external and internal audit possess the characteristics of auditing as defined by the American Accounting Association.

However, despite these similarities, differences exist between external and internal audit:

1. Position/ Relationship of the Auditor to the Organization Under Audit.

2. Governing/ Authoritative Body

3. Applicable Framework and Standards

4. Scope and Objectives

5. Certification Required

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