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I understand that some companies have internal auditors that use certain internal controls, but its the reporting of these i dont understand. how is the internal auditors report on the control deficiencies different from one prepare by external auditors? Would they both not be the same?
Often both sets of auditors’ reports on internal control weaknesses will be the same. However, the external auditor will be particularly interested in cnotrols that prevent material misstatements in the FS. Internal audit will be interested in that too, but will often also be interested in ‘less important’ controls. For example, IA might go through employee expense calime in detail to ensure compliance with company rules. External auditors might not look at this in detail (or at all) if they were satisfied no material errors could occur. For example, they might reply on ana;ytical procedures to assess expense figures.
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