What Are The Differences Between An Internal Auditor And An External Auditor?

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The internal auditor and external auditor professions present similarities, but also and above all, some notable differences. What are the main missions of these professionals working in the finance sector? Everything you need to know.

What Is An Internal Auditor?

The role of an internal auditor is to help a business achieve or set goals. To do this, the internal auditor performs audits which help him to analyze the company's risk management processes but also its internal control processes. He then formulates recommendations to the decision-makers of the company. They will help them make decisions that will improve the efficiency of the business (especially in financial terms) and help reduce dysfunctions. Thereafter, he will ensure the implementation of these decisions.

For each audit carried out, the internal auditor adopts a methodical approach which leads him to meet collaborators, carry out tests, observe, analyze data, etc. The idea is to analyze the business from several angles: commercial, accounting, tax, IT, human resources, etc.

We find internal auditors in large companies and large groups. They are required to audit the subsidiaries of the company when the latter has them.

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What Is An External Auditor?

The main difference between an internal auditor and an external auditor is that the external auditor is not employed in a company and works in an audit firm. He works for various companies for a limited time (the time to carry out his audit) and is therefore required to make regular trips during the year.

With regard to assignments, the role of the external auditor is to assess the financial situation of companies and to control their accounts. This is to ensure the compliance of data provided by companies and to ensure, to some extent, the sincerity of these

As part of his missions, the external auditor:
  • Meets the key players in the business;
  • Checks invoices and bank statements;
  • Analyze the capital of the company;
  • Writes summaries;
  • Formulates criticisms, recommendations.

The external auditors are notably called upon to intervene in the context of acquisitions and restructuring.

Note that having excellent interpersonal skills is essential for external auditors in UAE. They must succeed in adapting to each new business and understanding how they work to be able to properly carry out its mission.

The professions of internal and external auditors both require great rigor as well as a great capacity for work. You also need to know how to resist stress and have a synthetic mind.
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