Info 1: internal auditor definition
Info 2: how internal auditor works
Info 3: internal auditor vs external auditor
Info 4: example of internal auditor
Quick pick
A person who reviews, verifies, and prepares the financial statement for one specific individual industry is known to be an internal auditor
Opening information:
Internal auditor breaks into two words internal and auditors. Internal means inside of things, and auditor means account checker.
An internal auditor is an account checker who works inside the person in the company.
So now let’s have a look at what is an internal auditor, how the internal auditor works and involved in the public market, and what is the difference between the internal auditor and the external auditor, finally one brief example about the internal auditor.
Info 1: internal auditor definition
Joomar is the ice cream industry that produces more than hundreds of flavors in the market, they are their niche leader when compared to their other competitors.
However, they have been serving the market for almost nearly more than 17 years. This industry’s whole credit and debts are noted by their employee accountants in their business before submitting their financial statements to the Security and Exchange Commission (SEC).
At each quarter per 90 days of the operation in business days, such records are verified by two people one is by an auditor who works under the Joomla nonindependent public auditor.
Next another person is independent
an auditor who does not work under such a joomar organization but works and does audits for any public industry or company as a third-party auditor before submitting the financial statement to the SEC.
Here the auditor works under the joomar industry as a non third party Known to be an internal auditor. Many auditors who work preparing financial statements for only one particular industry as an employee are always elaborate as an internal auditor.
This same concept applies to all the public companies in the stock market, so let’s dive into the functions and works of internal auditors.
Info 2: how internal auditor works
Internal auditors don’t represent any of the specific things or objects, instead, they are accountant checkers who perform the activities inside or under one company alone.
However, their purpose is to arrange and track all the information regarding the shortcomings of debts and credits inside the company using the accounting people.
If such auditors don’t have a licensed or certificated public accountant to perform the audit they wouldn’t be able to file the financial statement for their company.
However, any individual who works under the person as an auditor inside a certain organization is called an internal auditor.
Supposedly if the auditor or such accountant had a degree in the related matter, other than they wouldn’t have any sense of license to perform the activities of audit to the public companies they couldn’t be categorized as a internal auditor.
Make sure that the auditor is not an accountant, where the accountant must track and record all the credit and debts with proof with certain statements, but the auditor is the person who checks and approves that all the written statements are correct.
Moreover to be involved in the activities of audit as a person for one public company, such a human must need to hold a licensed certified public accountant or in some other country rather than the USA they are separated as chartered accountants.
But the public companies are not allowed to submit their financial statement with internally certified auditors, they need to file all kinds of financial statement reports with the use of independent auditors as per the Security and Exchange Commission rules.
The internal auditor is the one who helps the public business to file their all statement correctly before re-auditing with an independent external auditor.
Most people confuse the external auditor and internal auditor, so let’s jump into the key difference in it anyway.
Info 3: external auditor vs internal auditor
The external auditor is the one who independently works as the third person to file the financial statement to the new public Investors and their Stakeholders.
Internal auditors are the same as external auditors but what makes them different is internal auditor works only under certain public Corporations.
But external auditor would have to audit with an accountant for any amount of public Corporation, but the internal auditor won’t. To make more clear about the internal auditor, let’s look at one brief example below.
Info 4: example of internal auditor
Say the company H is the one and you are the certified public accountant, and the company H is the one who had you as an auditor.
Because even when they had you as an auditor, company H had to do the audit with an outside auditor.
Here the auditing works and takes as you in the company H makes you an internal auditor and outsider which conduct auditing works for a company H makes such person or firm an external auditor anyway.