Know now the differences between internal audit and external audit

The audit is a process of analyzing the company’s financial and equity situation to identify the efficiency of the preparation of the financial statements , finding errors or possible irregularities that could harm the business, among others. For being divided into internal audit and external audit .

It is important that you know this difference, as it creates doubts in many entrepreneurs. Internal auditing occurs when the auditor is connected to the company , which may be someone from the accounting team or an accountant. In the external audit, the auditor is independent from the organization, that is, he is hired particularly for this purpose.

Want to understand the main differences between them? So, read on!

What are the most striking differences between internal audit and external audit?

It is necessary to identify the main differences between them to know when it is necessary to apply them in the company. See the most important points, below.


  • internal audit: used to base the decision-makingof business management . Its focus is linked to the needs of management;
  • external audit: focused on the market, that is, when the institution intends to make a loan or seek investors. It serves as a guarantee that the business has good governance practices, as a way of increasing its confidence.


  • internal audit: the auditor is linked to the company and does not need to have an accounting background, although normally the person responsible is a professional in this area;
  • external audit: the auditor is independent and needs to be trained in accounting, with CVM and CRM records.

Analysis type

  • internal audit: operational and accounting;
  • external audit: accounting only.


  • internal audit: it is an initiative initiative by the institution itself with the objective of improving its internal processes;
  • external audit: it is mandatory for large and publicly traded organizations.

What are the benefits of internal and external audits?

These types of audits can have several advantages. Meet the main ones!

Internal audit

  • provide accurate data on the company’s current situation;
  • inspect internal controls and verify their effectiveness;
  • avoid unnecessary payments;
  • identify flaws in the processes and advise on preventive and corrective actions;
  • guarantee the financial statements;
  • prevent fraud by giving employees greater attention.

External auditor

  • contribute to corporate governance policy;
  • increase the company’s level of confidence in the market;
  • objectivity, since the external auditor has no preconceived ideas of the organization;
  • analyze the accuracy of accounting records;
  • ensure compliance with the requirement established by law.

What is the ideal audit for each type of company?

It is important to keep in mind that one type of audit does not replace the other. To find the most suitable for the company, it is necessary to reflect on some points:

  • if the institution wants to carry out an operational and accounting audit, the internal audit is ideal. If it is only accounting, external;
  • if the company needs help to collect information or identify the efficiency of controls, internal audit. If you need to identify risks, it will be the external audit;
  • if the company intends to seek a shareholder or make a loan, it will be the external audit.

Were you able to understand the main differences between internal audit and external audit? They are important tools to keep processes organized, documentation up to date, the company legalized and other important issues to maintain credibility with the market. To make the right choice, keeping the accounts up to date and having the guidance of a qualified professional is essential.


by Abdullah Sam
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