Independent Study for Accountants U23000
Added on 2020-05-11
16 Pages5605 Words65 Views
Running head: INTERNAL VS EXTERNAL AUDITORInternal vs. External AuditorsName of the StudentName of the UniversityAuthor’s Note
1INTERNAL VS EXTERNAL AUDITORTable of ContentsTitle..................................................................................................................................................2Rationale..........................................................................................................................................2Research Problem............................................................................................................................2Research Objectives.........................................................................................................................3Research Questions..........................................................................................................................3Literature Review............................................................................................................................4Critical Analysis and Discussion.....................................................................................................7Conclusion and Recommendations................................................................................................10References......................................................................................................................................13
2INTERNAL VS EXTERNAL AUDITORTitleInternal Auditors vs. External AuditorsRationaleAuditing is the process of inspecting the major financial accounts of the businessorganizations so that any kind of material misstatements in the financial. From the abovestatement, it can be guessed that auditors has a critical role to play in the business organization asthe investors make their investment decisions based on the auditor’s reports. In the companies,two types of auditors are seen; they are Internal Auditors and External Auditors (Vijayakumar &Nagaraja, 2012). Bothe of these two types of auditors has different factions and responsibilitiesin the companies. For this reason, this particular proposal has its importance. Both internal andexternal auditors are worked in the companies based on their professional responsibilities. Bothinternal and external auditors need to know their jobs role in the companies very well so thattheir roles cannot be mixed up (Allegrini & Greco, 2013). The research questions of this studywill be able to distinguish the roles and functions of internal and external auditors. Thus, it canbe seen that the research questions have direct relation with the core of the study. In addition, theliterature review of the research will be made in such a way so that they are able to answer theresearch questions of this study. Research ProblemIn the above discussion, it is mentioned that the role and responsibilities of both theinternal and external auditors are different from each other. In the business organizations, it isrequired for both the internal and external auditors to complement their job functions (Yasin &Nelson, 2012). For this reason, it is required for both the internal and external auditors to workclosely and there needs to be cooperation between their jobs. The success of the job of externalauditors vastly depends on the works of internal auditors as the internal auditors provideimportant business information to the external auditors (Alzeban & Gwilliam, 2014). However,there are many instances where lack of coordination has been seen in between the internal andexternal auditors. This can be considered as a major problem in the companies as this lack ofcoordination affects the audit operation of the companies. This particular study takes an honest
3INTERNAL VS EXTERNAL AUDITORattempt to solve this particular issue by discussing the different roles and functions of bothinternal and external auditors in the companies. With the help of the overall analysis, the studywill be able to solve the Research ObjectivesAccording to the above discussion, the main aim of this research is to make analysis andevaluation of the various aspects of internal and external auditors. In this research, there needs tohave some specific research objectives as these research objectives will provide the researcherwith the necessary direction to carry on the research processes. Based on the rationale andproblems of this research, some major research objectives have been set. These researchobjectives are shown below:The first objective is to conduct a discussion on the major roles and factions of internalauditors in the companies.The second objective is to discuss the major roles and functions of the external auditorsof the business organizations.The third objective of this research is the identification of the major differences betweenthe role and responsibilities of both the internal and external auditors in the companies.The fourth objective of this research is to make a discussion on the connection orrelation between the world of both internal and external auditors.These are the major objectives of this particular research. Thus, with the help of the above-mentioned research objectives, the researcher will take an attempt to solve the major issues orproblems of the research. Research QuestionsThere is a relation between the research objectives and research question as research questionsare derived from the analysis of research objectives. There is not any exception of this fact forthis research. The research questions are discussed below:1.What are the role and functions of internal auditors?2.What are the role and functions of external auditors?
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