Audit Interview Question:

Explain the difference between internal audit and statutory audit?

Submitted by: Administrator

An internal audit is one which is conducted by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the operations of the company. On the other hand statutory audit is very important because it is by the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually conducted for various purposes like tax regulatory requires it for taxation purposes.
Submitted by: Administrator

Internal Audit involves appraisal and evaluation of internal controls set by management of an organization. Internal auditor is responsible to report to the management on any matter concerning Internal Control system. While statutory audit is independent examination of, and expression of opinion on the financial statement of an entity.
Submitted by: Mwana Mwakabonga