Introduction

Auditing is an activity performed to evaluate the effectiveness of internal processes and controls, and to ensure that an organization is complying with legal and regulatory requirements. There are two different types of audit: internal audit and external audit.

Internal audit

The internal audit is carried out by a team of internal auditors who are employees of the organization itself. Its main objective is to evaluate the organization's internal control systems and ensure that risk management processes are effective. Internal auditors are not required to comply with the independence requirements that apply to external auditors.

Responsibilities of internal auditors

• Evaluation of internal control systems
• Ensure compliance with policies and procedures
• Risk management
• Provide recommendations to improve internal processes

External audit

The external audit is carried out by a team of external auditors who are independent of the organization and have no connection with it. External auditors are responsible for evaluating the truthfulness and accuracy of the company's financial statements. Its report is delivered to shareholders and interested third parties.

Responsibilities of external auditors

• Verification of the accuracy of the financial statements
• Evaluation of adherence to accounting principles
• Evaluation of compliance with rules and regulations
• Participate in the audit process to evaluate internal control systems

Conclusion

Internal audit and external audit are two different types of audit that have different objectives. Both are necessary to ensure the effectiveness of internal processes and to evaluate the accuracy and validity of the organization's financial statements. It is important for companies to have both types of audits to ensure they are operating correctly and complying with legal and regulatory requirements.

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