"Difference between internal and external audit (327)An audit is a professional, independent opinion about a company's utilization of generally accepted accounting principles (GAAP) when preparing its financial statements. There are two types of audits; internal and external. The Institute of Internal Auditors defines internal auditing as, " an independent, objective assurance and consulting
. activity designed to add value and improve an organization's operations" . An internal audit includes, but is not limited to, examining the effectiveness of an organization's risks and internal control procedures, analyzing and testing these controls, and recommending any necessary changes for improvement. External auditing is the examination of an organization's financial statements by a qualified, independent accountant. The primary purpose of an external audit is to test the validity of the documents used to support the amounts and disclosures provided in an organization's financial statements. Referencehttp://www.theiia.org/theiia/about-the-profession/internal-audit-faqs/?i=1077http://www.audit.cornell.edu/faq.html"
