What are the differences between statutory audit vs internal audit for compliance?

[ankita]

I know both statutory and internal audits are important, but what are the main differences? Which areas do they focus on, and how does compliance vary between them?

 

[riya]

Statutory audit is a regulation driven audit that is conducted by an external auditor to assess the accuracy of the financial statements and whether they are born with regulation. Internal audit is performed by internal teams in order to assess risk management, controls and operations. The legal compliance is provided under statutory audits, whereas efficiency is enhanced and internal governance is enhanced under internal audits.

 

[Rick_Grimes]

A statutory audit is legally required, done by external auditors, and checks if a company’s financial statements comply with laws and regulations. An internal audit is done by the company’s own team (or hired internally) to review processes, risks, and controls, making sure operations follow internal policies and stay compliant.

 

[Mayank]

Statutory audit is a mandatory external review of financial statements to ensure legal compliance, while internal audit is an ongoing internal process focusing on risk management, operational efficiency, and internal controls to support organizational governance and compliance.

 

[Emly]

A statutory audit is a mandatory, external review of financial statements to ensure legal compliance, while an internal audit is an in-house assessment focusing on risk management, controls, and operational efficiency for organizational improvement.

 

[kebido]

Statutory audits are mandatory, external exams of financial statements for legal compliance and to provide assurance to shareholders, while internal audits are proactive, internal reviews of controls, risk management, and operational efficiency. The primary difference is that statutory audits focus on historical financial accuracy for external stakeholders, whereas internal audits focus on continuous improvement and risk management for internal management.