Internal and external audit groups similarly are responsible for the proper assessment of a business' business operations. Reports are prepared based on the actual results gathered from the evaluations conducted on the company. Note, though, that they also have dissimilarities which likewise form the core of the financial aspect of the business.
While both sides basically have similar duties, note that only the internal auditors are employed in the company being audited. They play an integral role in the organization by overseeing the different procedures in the office and making sure that they are in compliance with the guidelines of the government and the company itself. They have a say as to how to enhance each department or employee's proficiency so that the latter can better deliver their responsibilities.
External auditors belong to a third party employed by the company they are auditing. Their job is to verify the correctness of the financial statements prepared. They ensure whether these reports well represent the real state and dealings of the business. These include the balance sheet, profit and loss statement, cash flows report and statement of retained earnings. All of these are done with the standpoint of an outsider.
In order to avoid issues or conflicts, it is important to manage the relationship of both parties well. One way to do this is to make sure that the internal audit staff's skills and competency levels are at least at par with the set standards in terms of their educational background and certifications. To reinforce the employees' proficiency in doing their respective jobs and to encourage them to take up certifications for the growth of their careers, it will be best if they're sent to various trainings.
One more key to having a good and viable working relationship between internal and external audit groups is the availability of information. Make sure to keep the lines of communication open between each party. Constantly recognize their needs and provide these as soon as possible. Ultimately, they will be able to submit accurate and timely reports due to the efforts to make the processes smooth flowing.
While both sides basically have similar duties, note that only the internal auditors are employed in the company being audited. They play an integral role in the organization by overseeing the different procedures in the office and making sure that they are in compliance with the guidelines of the government and the company itself. They have a say as to how to enhance each department or employee's proficiency so that the latter can better deliver their responsibilities.
External auditors belong to a third party employed by the company they are auditing. Their job is to verify the correctness of the financial statements prepared. They ensure whether these reports well represent the real state and dealings of the business. These include the balance sheet, profit and loss statement, cash flows report and statement of retained earnings. All of these are done with the standpoint of an outsider.
In order to avoid issues or conflicts, it is important to manage the relationship of both parties well. One way to do this is to make sure that the internal audit staff's skills and competency levels are at least at par with the set standards in terms of their educational background and certifications. To reinforce the employees' proficiency in doing their respective jobs and to encourage them to take up certifications for the growth of their careers, it will be best if they're sent to various trainings.
One more key to having a good and viable working relationship between internal and external audit groups is the availability of information. Make sure to keep the lines of communication open between each party. Constantly recognize their needs and provide these as soon as possible. Ultimately, they will be able to submit accurate and timely reports due to the efforts to make the processes smooth flowing.
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