What factor conceptually distinguishes external auditing and internal auditing?
A) Tests of controls
B) Substantive tests
C) Education
D) Constituencies

Question

Quizplus · Accepted Answer

The factor that conceptually distinguishes external auditing and internal auditing is their constituencies. External auditors are independent and perform audits on behalf of external stakeholders such as investors and creditors, while internal auditors are employed by the organization to provide assurance and consulting services to management and the board of directors. Tests of controls and substantive tests are performed by both internal and external auditors, and while education may play a role in distinguishing the two types of auditors, it is not a conceptual factor.

What Factor Conceptually Distinguishes External Auditing and Internal Auditing