Audits aren’t just about numbers; they’re about trust, transparency, and truth.
Internal and statutory audits may seem similar, but they serve distinct, critical purposes.
Think of it as your company’s health check-up.
Carried out by insiders or external experts, it’s a proactive tool ensuring your business’s processes and systems are up to par with your policies.
It’s about operational efficiency and staying ahead of the game.
This is where the rubber meets the road. Conducted by independent chartered accountants, it’s the legal litmus test of your financial statements’ accuracy.
It’s not just a formality; it’s a fidelity check for your stakeholders.
📍Key Differences:
➡️Qualifications: Internal auditors have diverse backgrounds, while statutory auditors are licensed chartered accountants.
➡️Appointment: Internal auditors are hired by management, but statutory auditors are appointed by shareholders.
➡️Objectives: Internal audits safeguard operational integrity, whereas statutory audits validate financial honesty.
➡️Reporting: Internal auditors report to management; statutory auditors report to shareholders.
➡️Frequency: Internal audits are as needed, and statutory audits are annual.
📍Similarities: Both audits require independence and follow a structured approach to ensure your business operates without a hitch.
Whether it’s internal or statutory, audits are not just compliance; they’re a cornerstone of corporate governance.
They’re what keeps businesses credible, accountable, and on the path to sustainable success.
