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I m confused … The difference between audit commitee … Internal audit department . the need for establishing both ? The objective of establishment of both? And if the company has internal audit department , where would be the internal auditor existance ? Or either internal auditor is connected to the internal audit department ? And if the company outsourcing internal audit department should internal auditor still be present in the company? I am really confused . .. Would be obliged if my issue is resolved Thankyou .
An audit committee is a sub-committee of the board, consisting of non-executive directors, which liaises with external audit and internal audit.
Internal audit is a function that can be carried on by the company’s staff or which can be outsourced. The prime function is to examine the operation of the company’s intrenal controls. There might also be requirements from time to time to undertake special investigations.Internal auditors, whether employees of the company or the outsource firm’s employees, carry out the work of internal audit.
The UK Corporate Governance Code requires listed companies to have an audit committee. They have to keep the need for internal audit under review.
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