Statutory Audit and Internal Audit
The main difference between statutory audit and internals audit is that statutory is a legally require external audit of a company’s financial statements, whereas internal audit is an internals review of an organization’s operations, systems, and controls.
Statutory Audit:
Statutoryaudits is a mandatory audit conduct by an independent external auditor to review the financial statements of an organization and determine if they present a true and fair view of the company’s financial position. Statutory audit is require by law and is necessary to comply with statutory requirements and regulations. The primary objective of statutory audit is to provide assurance to shareholders, stakeholders, and regulatory authorities that the financial statements are reliable and trustworthy.
Internal Audit:
Internal audit, on the other hand, is an internal review of an organization’s operations, systems, and controls, conduct by an independent team of auditors. The purpose of internal audits is to identify any weaknesses in the organization’s processes, systems, and controls, and provide recommendations for improvement. Internal audits helps organizations to improve their operational efficiency, reduce risk, and ensure compliance with internal policies and procedures.
In summary, statutory audit is a mandatory external audit conducted to ensure compliance with legal and regulatory requirements, while internal audit is an internal review of an organization’s processes, systems, and controls to identify areas for improvement and ensure compliance with internal policies and procedures.
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