Hello all,
I am very confused concerning who internal and external auditors report to.
Internal: CFO, Management, Board of directors, Audit committee?
External: Shareholders, Audit committee, Board of directors?
And an external auditor is appointed by who?
Please help me understand this.
Thank you.
ACCA Forums
BTImportant and very confusing question
Internal auditors report to the Audit committee. This is to ensure their independence. External auditors are generally appointed by the shareholders of the company.
Correction to the above statement. The board of directors often appoint the auditor and this is confirmed by a vote of the shareholders at a general meeting of the company.
The auditor report is addressed to the members (shareholders) of a company.
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