What is the Difference Between Internal and External Audit?

Here is an overview of the differences between Internal and External Auditors
Internal AuditorsExternal Auditors
MandateIAs have a duty to senior management and the board via the audit committee on the state of governance, risk management and control within the organisation.EAs have a statutory obligation to shareholders and the public on the accuracy of the annual report and the financial statements.
Areas of focusIAs focus on the whole organisation, all departments, functions and operations.EAs focus on finance and accounting.
IndependenceIAs can be part of the organization or from an external service provider, but are independent of management, they provide internal audit assurance and report to the audit committee.EAs are independent external assurance providers to the organisation and hace a statutory obligation
Risk and ControlIAs provide an independent view on the organisation’s governance, risk management and control processes. They review the adequacy of control design to ensure that risks are effectively managed, and the test operation of key controls to ensure they are operating as intended and therefore are effective in managing the organisation’s risk.EAs identify risks and assess controls over financial reporting and place reliance on controls to the extend practicable. Emphasis is on gaining sufficient audit evidence to conclude that the financial statements present a true and fair view.
Driving ResultsIAs make recommendations to improve the overall internal controls environment and to improve the operational performance of the organisation as a whole.EAs make recommendations to improve the financial control environment.