Difference Between Internal Audit and Statutory Audit

The most obvious difference lies in the appointment of the auditor. While internal auditors are appointed by the management of the company, statutory auditors are appointed by the shareholders of the company. ... Internal audit also tries to detect any anomalies and errors that may have crept in the financial statements.

1. What is the difference between internal and statutory audit?
2. Which is better internal audit or statutory audit?
3. Can internal auditor and statutory auditor be same?
4. What is the difference between statutory audit and external audit?
5. What you mean by statutory audit?
6. Is statutory audit compulsory?
7. Why internal audit is a good career?
8. Is internal audit mandatory?
9. What should I do after internal audit?
10. Can statutory auditor do tax audit?
11. Who is liable tax audit?
12. Who appoints statutory auditor?

What is the difference between internal and statutory audit?

2. Statutory Audit is done annually to form an opinion on the financial Statement of the Company i.e. whether they are showing the true and fair views of the affairs of the Company or not Whereas Internal Audit is done basically to detect and prevent errors and frauds.

Which is better internal audit or statutory audit?

Statutory audit is better than internal audit .... In Internal audit work u ll start feeling as if instead of article u r an employee of the company or firm of which u r doing internal audit.. internal audit work is monotonous too....

Can internal auditor and statutory auditor be same?

3.4. 15 A statutory auditor of a company cannot also be its internal auditor, as it will not be possible for him to give independent and objective report issued under sub-Section 4A of Section 227 of the Companies Act, 1956 read with the Companies (Auditors' Report) Order, 2003.

What is the difference between statutory audit and external audit?

The main difference of that some entity may engage with external auditors to audit their financial statements because of the requirement from the board of directors or shareholder requirement. However, for statutory audit, even though the board or shareholders don't want, the entity still has to engage.

What you mean by statutory audit?

A statutory audit is a legally required check of the accuracy of the financial statements and records of a company or government.

Is statutory audit compulsory?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year. This type of audit is not conditional, it depends upon the entity type.

Why internal audit is a good career?

Internal auditors gain an in-depth, up-close understanding of the processes, policies and procedures of an organization. Partnering with management, they are able to provide invaluable operational knowledge and industry insights to companies, with frequent exposure to the board.

Is internal audit mandatory?

Appointment of internal auditor is mandatory for every producer company irrespective of any criterion. Further, the proviso provides that any existing company which is covered under any of the above criteria shall comply with the requirements of section 138 and rule 13 within six months of commencement of such section.

What should I do after internal audit?

Common exit opportunities after internal audit:

1. most common is compliance at Wells Fargo or at another large bank.
2. risk management, such as a "operational risk consultant" at Wells Fargo or another large bank.
3. Big 4 advisory or external audit.
4. accounting.
5. corporate finance.
6. internal audit for another F500 company.

Can statutory auditor do tax audit?

Yes. Section 44AB of the Income-Tax Act, 1961, stipulates that only Chartered Accountants should perform the tax audit. This section does not stipulate that only the statutory auditor appointed under the Companies Act or other similar Statute should perform the tax audit.

Who is liable tax audit?

Every person who earns income by any business or profession has to maintain his books of accounts get a tax audit done except those who opted for presumptive taxation under section 44AD, 44ADA, 44AE of the income tax act 1961.

Who appoints statutory auditor?

How is the appointment of an Auditor for different kinds of Companies done? -Appointed by the Board Of Directors. -This has to be done within 30 days from the date of Registration. -Appointment can also be done by Members at Extraordinary General Meeting within 90 days of information.