Internal Audit!

Dear Shams
From the my understanding the internal audit is not a statutory audit

No statutory audit is an activity that must be carried out by external auditors.Internal auditors are hired to conduct audits into the financial statements produced by companies. They report to shareholders giving their opinion as to whether the financial statements produced by the company give a true and fair view.

External auditors are purely concerned with providing an opinion on the financial statements produced by the management of the company.

The purpose of an external audit being to report back to the shareholders (i.e. the owners) whether or not in their opinion the financial statements have been presented faithfully.

An external audit is a statutory requirement for incorporated entities, smaller entities are exempt from such.

In contrast, internal auditors do an internal audit for the company, an internal auditor can also be an employee of the company, but their duties are vast and wide ranging. There main objective is to consider a company’s risk management, governance and internal control processes are operating effectively.

There is no requirement for a company to have an internal audit function, but many listed companies in general do have one, and where you do no have one companies should annually review whether or not they should have one.

Hope this answers your question adequately. If you have any more questions, please do not hesitate to ask. Thank you.