Which of the following statements is not correct with regards the differences between internal and external audit?
A)External auditors report primarily to shareholders while internal auditors report primarily to the board via the audit committee.
B)External auditors' work is governed by international auditing standards while internal auditors' work is governed by the IIA's Professional Practices Framework.
C)External auditors' area of focus is organisation wide while internal auditors' area of focus is finance and accounting.
D)External auditors do not include recommendations in their auditor's report while internal auditors do include such recommendations in their report.

Question

Quizplus · Accepted Answer

The statement that external auditors' area of focus is organization wide while internal auditors' area of focus is finance and accounting is incorrect as external auditors also focus on financial reporting and accounting in their audit. In fact, external auditors' main responsibility is to provide assurance on the fair presentation of the company's financial statements. The correct statement is that internal auditors may have a broader scope that includes operational and strategic risks beyond finance and accounting.

Which of the Following Statements Is Not Correct with Regards