If you are an accountant and has chosen to be in the public practice of accounting you may work as an auditor. It might be an internal auditor or an external auditor. This article will be your bases in choosing between the two.
What are the similarities between an internal and external auditor?
Internal and external auditors have many similarities. Among their similarities are both have evaluating functions and involves the examination of many transactions. The evaluating functions mentioned awhile ago are examining the internal control of the company or testing if the bad debts of the company are reasonable. Another similarity is that both must ensure that the procedures in the internal control is not weak and is followed. Both types of auditors are based in a professional discipline and must work together. The very important role of an internal and external auditor is to give a formal report on the activities they have made to ensure that the financial statement is not misstated.
What are the differences between an internal and external auditor?
One significant difference between the two is that an external profession is only a contractor and not an employee of the company he has been audited while internal auditors are employee of the company they are working. Another difference is that the previous provides an opinion on the financial statements whether it is presented appropriately or not. On the other hand an internal auditor forms opinion about how adequate and effective is the system of internal control in the company. Risk management is the best concerned of an internal auditor while final accounts and the presentation of the data is the concerned of the external auditor. Internal auditors has access of the companies resources like the audit committee, companies documents and authority to discuss initiate policies and procedures to reduce risk, improve internal control and compliance to financial reporting and governance. Though external auditors can do the activities mentioned they need full authority.
Career opportunities for an internal and external auditor
Both professions have similar career opportunities that both do audit. An internal auditor is the auditor of a certain company that ensures the strength of its internal control. If an internal auditor has enough experience then he can be a CFO, CO or a controller. An external auditor is an auditor who audits a certain company without being employed of the audited company and in the long run they will become fulltime CFO. Only the latter can provide an audit report.
