Here are the key differences between internal and external auditing: Internal Auditing: - Provides information to company management only - Conducted by employees under direct control of management - Internal auditor is fully related to management - Continuous in nature - Auditor may or may not have professional qualifications External Auditing: - Provides information to both internal and external parties like owners, government etc. - Conducted by independent registered auditors not under control of management - External auditor is free from management influence - Conducted periodically as required by law/statute - Auditor must have professional qualifications for statutory audits In summary, internal audit focuses on improving internal processes for management, while external

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2. International Islamic University Chittagong
Dhaka Campus
Group – C
Md. Mehedi Hasan B081501
Md. Badrul Alam B081502
Md. Wali Ullah Rifat B081516
Md. Masum Billah B081560
Md. Tarekur Rahman B071705

3. Principles & Practices of Auditing
 Advantages of Audit
 Classifications of Audit
 Distinction between Continuous & Interim
Audit
 Internal Audit vs External Audit

4. Md. Shaheb Ali Mondal
Asst. Professor
Bachelors of Business Administration Dept.
International Islamic University Chittagong
Dhaka Campus

5.  What is an Audit
An audit is an accounting procedure under
which the financial records of a company or
individual are closely inspected to make sure
that they are accurate.
 The Main Purpose
One of the main purposes of the auditor’s
report is to ensure that the finances of the
company, both the Accounts Payable and the
Accounts Receivable, are being conducted in a
manner that is in keeping with legal
requirements.

6.  Advantages To Business
 Advantages To The Public
 Advantages To The State

7. 1. Satisfaction of Owner
2. Detection and Prevention of Errors
3. Verification of Books
4. Independent Opinion
5. Detection and Prevention of Frauds
6. Moral Check
7. Protection of the Rights and Interests of
Shareholders

8. 8. Reliance by Outsiders
9. Loan Facility
10. Easy Valuation
11. Upto Date Record
12. Reliance by Partners
13. Reliance by Shareholders

9. 1. Safety from Exploitation
2. Facility for Prospective Investor
3. Satisfaction about Business Operations

10. 1. Privatization of Industries
2. Easy Assessment of Tax
3. Quick Recovery of Taxes
4. Leading to Economic Progress

11. Audit
Legislative Relation of Periodicity Subject Matter Coverage Manner of
Control Auditor Checking
vis to vis Continuous Financial Audit Complete Audit
Statutory Audit Management Audit Standard Audit
Operational
Partial Audit
Interim Audit Audit Balance Sheet
Government External Audit
Audit Periodical Audit Cost Audit Audit
Internal Audit Occasional Management Post & Vouch
Private Audit Audit
Audit Audit

12. Factors Continuous Audit Interim Audit
Definition An audit which involves a detailed examination An audit, which is, conducted between the
of the books of account of regular intervals is two periodical or balance sheet auditors
known as continuous audit i.e. one month or
three month.
Objective To know profit or loss is not necessary. To find the profit or loss is important.
Audit Date The work of audit is carried on up to any date The work of audit is carried on up to a
according to the convenience of the auditor and definite date according to the instructions
his client. of the client.
Verification Assets & Liabilities are verified after the balance Assets & Liabilities are verified when such
of Assets & sheet has been prepared an audit is conducted
Liabilities
Trail No need to prepare Has to be prepared or checked
balance
preparation
Organizatio It is applied in big organization. It is applied in all type of organizations.
n size

13. Internal Auditing External Auditing
It provides the information to owner of Main purpose of external audit is to give
Co. and management only. the information of internal as well as
external i.e. owner, government etc.
Employee under the direct control of This audit is made by the registered
management does internal audit. auditor
Internal auditor is fully related to External auditor is free from management
management
It is continuous nature It is conducted periodically
Internal auditor may or may not have In all case of statutory audit, auditor must
professional qualification have professional qualifications.

14. The season for audience
Query ?