Which of the following is a difference between an internal auditor and an external auditor?
A. An internal auditor conducts the audit because a deficiency has been identified, whereas an external auditor conducts audits on a recurring basis.
B. An internal auditor manages accounting and internal control of an organization, whereas an external auditor examines the financial data of an organization.
C. An internal auditor's reports are used by the users of the financial statements, whereas the external auditor's reports are used by the management and internal auditor.
D. An internal auditor reports on the level of compliance with a company's internal policies, whereas the external auditor reports on the level of compliance with external laws and regulations.
Answer:A
Which of the following is a difference between an internal auditor and an external auditor?
A. An internal auditor conducts the audit because a deficiency has been identified, whereas an external auditor conducts audits on a recurring basis. B. An internal auditor manages accounting and internal control of an organization, whereas an external auditor examines the financial data of an organization. C. An internal auditor's reports are used by the users of the financial statements, whereas the external auditor's reports are used by the management and internal auditor. D. An internal auditor reports on the level of compliance with a company's internal policies, whereas the external auditor reports on the level of compliance with external laws and regulations.
Explanation: A) The internal auditor conducts an audit according to a plan or because a deficiency has been identified. An external auditor conducts an audit on a recurring basis.