Internal audit vs statutory audit – difference?

[xavier]

Need a clear comparison of internal audit vs statutory audit.

 

[Shane Warne]

Internal audit is done on internal control and efficiency whereas the statutory audit is done by law to verify that the financial statements are in compliance.

 

[Jaxon]

Internal audit is an internal, continuous review to improve controls and efficiency. Statutory audit is a legally required, independent examination of financial statements to ensure accuracy, compliance with laws, and fair presentation for stakeholders and regulators.

 

[John Smith]

Internal audit focuses on improving internal controls, risk management, and operational efficiency within an organization. It’s optional and conducted regularly. Statutory audit is legally required, performed by external auditors to verify financial statements and ensure compliance with laws and accounting standards.

 

[Shane Warne]

A statutory audit is a compulsory audit by an external auditor which is undertaken to audit financial statements and an internal audit is an audit done by an external auditor to an organization which is aimed at enhancing operations, risk management, and internal controls. Internal audits are concerned with efficiency and compliance as compared to statutory audits which are concerned with accuracy and legal reporting.