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InsightsInternal Audit and Internal Control

Internal vs Independent Auditing Differences

Internal and Independent Audit Differences


  1. The independent auditor is not an employee of the institution he audits and carries out the audit activity in accordance with the audit contract. In the period until the Enron scandal, independent auditors were providing external support to the internal audit activity (outsourcing). However, this situation was rearranged and restricted with the regulations made after the accounting scandals (Sarbanes Oxley law in America and CMB regulations in Turkey).
  2. While the independent auditor works to form an opinion on the financial statements, the internal auditor forms an opinion on the efficiency of internal controls and risk management and makes suggestions to eliminate deficiencies.
  3. The objectives and scope of activities of independent audit and internal audit differ.
  4. Independent audit has been made mandatory for companies subject to KGK limits, with the authority given by the Council of Ministers. However, an internal audit is not obligatory.
  5. While the scope of internal audit activity covers the entire business organization, the scope of the independent auditor is only the basic financial structure that can affect the financial statements.
  6. While internal audits are concerned with the effectiveness of the internal control system, independent audits are concerned with whether the internal control system will reduce the audit tests required.
  7. While internal audit activities span the entire year, independent audit activities are generally carried out after the end of the year, except for some audit tests that are required during the year.


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