Auditing involves conducting a formal review of an individual’s or organization’s financial statements. Auditors evaluate systems, processes and projects to gain information about financial systems. They perform validity and reliability functions to assess a system’s internal controls. There are external, internal and cost auditors who perform a wide variety of audits, including security, information system and performance audits.
External Auditors are hired independently to audit a company’s financial statements to ensure they are presented fairly in accordance with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) and free of material misstatement.
Internal Auditors provide an independent, objective evaluation of an organization’s risk management, internal controls and governance processes. They verify internal controls are in place and are working effectively to prevent and detect fraud.
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