IA vs EA

__________________ is an independent firm who give independent assurance on the fairness of financial statement , whereas ______________ is an employee of the organization who give independent assurance on Governance, Risk Mangament and Control

• External Audit, Internal Audit

• Internal Audit, External Audit

• Internal Audit, Fraud Investigator

• External Audit, Fraud Examiner

What is the main responsibility of internal audit in relation to Governance, Risk Management, and Control?

• Monitoring and recording

• Planning and budgeting

• Assurance and consultation

• Supervision and evaluation

How does control risk influence the risk of material misstatement (RMM) in an audit?

• Lower control risk increases the risk of material misstatement.

• Higher control risk decreases the risk of material misstatement.

• Higher control risk increases the risk of material misstatement.

• Control risk has no effect on the risk of material misstatement.

How can internal audit work help reduce the work of external auditors?

• By preparing financial statements for external auditors

• By eliminating the need for audit evidence

• By providing reliable assurance on internal controls and processes

• By replacing the statutory responsibilities of external auditors

What is the main benefit of effective coordination between internal auditors and external auditors?

• Allowing internal auditors to override external audit findings

• Minimizing audit cost and avoiding duplication of work

• Reducing the independence of both audit functions

• Eliminating the need for audit documentation

Below are the differences between internal audit and external audit except:

• Internal audit reports to management; external audit reports to shareholders or regulators.

• Internal audit focuses on governance, risk management, and internal controls; external audit focuses on financial statements.

• Internal audit is an employee of the organization; external audit is an independent third party.

• Internal audit is conducted annually and required by law; external audit is conducted whenever management requests.