Summary Table for Audit and Assurance services
General types of Audit
Differences External audit
Internal Audit
Government Audit
Financial Audit
Operations Audit
1. User
Potential investor,
Investors
Management,
Board of Directors
State
Management,
BOD, Creditors,
Investors
Management, Board
of Directors
2. Nature
An external audit is an indepth examination of a
company's financial
records by an
independent accountant
that results in a verified
certification. They are
hired by a company and
not employed by it.
Internal audit is
used to make
managerial
changes and
improvements to
internal controls.
Auditors are
employed by the
company.
Government auditing
is the analytical and
systematic
examination and
verification of financial
transactions,
operations, accounts
and reports of any
government agency
Auditors review
transactions,
procedures, and
balances to
conduct a
financial audit.
An operational audit
analyzes your
company’s goals,
planning processes,
procedures, and
operation results.
3. Purpose
The main objective of an
external audit is to
determine the accuracy of
accounting records.
External auditors look for
financial misstatements
resulting from errors,
fraud or embezzlement.
The purpose of an
internal audit is to
ensure compliance
with laws and
regulations and to
help maintain
accurate and timely
financial reporting
and data
collection.
the purpose
of determining their
accuracy, integrity and
authenticity, and
satisfying the
requirements of law,
rules and regulations,
so as to avoid misuse
and misappropriation
of public funds.
To evaluate
whether the
financial
statements are
materially
correct,
complete, and
reported in
accordance
with generally
accepted
accounting
principles (GAAP).
The goal of an
operational audit is to
fully evaluate your
business’s operations
and determine ways
to improve them.
Objective of
financial audit is
the appraisal of
a company's
finances
4. Kind of
Auditor
External Auditor
Internal Auditor
Commission on Audit
Internal Auditor
Internal Auditor
5. Audit
Standards
PSA, PFRS, GAAS
IAS, Company
standards, etc.
GAAS, Laws and
regulations by the
state, Internal Auditing
Standards for Public
Sector, PGIAM
Accounting
Standards
(PAS, PFRS, &
IFRIC
interpretations).
The
standards are
used as
the established
criteria
judging the
assertions
in financial audit
The best practices or
benchmarks set by
the Board are used
as the established
criteria judging the
assertions in
operations audit.