External and Internal Auditing
External Auditing: The purpose of an independent audit is to provide assurance that the management has presented financial statements that are free from material error or misstatement. Additionally, hiring an independent and qualified public accountant provides assurance to banks, suppliers, and potential buyers that the business is financially sound and credit worthy. This service includes the issue of audited financial statements that are needed to provide information to external users, including investors, customers, government and tax authorities.
Internal Auditing: The role of internal audit is to provide independent assurance that an organization’s risk management, governance, and internal control processes are operating effectively. Internal audit is conducted objectively and designed to improve and mature an organization’s business practices. This service includes assessing financial and administrative risks, and evaluating controls designed to address these risks through onsite visits. It also includes reports that may be provided periodically to management.