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Distinguished between Internal Auditor & External Auditor.

The distinguishing between Internal Auditor & External Auditor are given below:



           Basis
Internal Auditor
External Auditor
Function
Internal auditor designed to add value & improve an organization's operation.
External Auditor express an opinion on the Financial Statement.
Reporting to
The Board of directors  or the Audit Committee
The shareholder of the company
Relating to
Internal auditor's work relates to the operations of the org.
External auditor's work relates to the Financial Statements.
Relationship with the company
Internal auditors are very often employees of the org. Although sometimes it is outsourced
External Auditors are independent of the company and its management.
Engaged by
Internal auditors are employed or engaged by management
External auditor's are engaged by govt.

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