Question

Explain FIVE differences between a financial statement and an internal audit engagement.

Answer 1

1-Financial statements are those statements which uses to ascertain profit or loss and financial position of the company

Internal audit engagement means the engagement of audit services by the auditor and and client before starting an audit work

2-Financial statements are prefix to internal audit engagement. financial statements should be done before the audit engagement

3-Financial statements include financial data information useful to the stakeholders expressed in monitory terms

Internal audit engagement consist of scope of audit,objectives of audit, auditors responsibilities etc ,ie almost items are in non monitory nature

4-Financial statements gives financial performance and state of affairs of company,but audit engagement gives the contract of dealing audit function

5-While preparing Financial statements audit is more or less compulsory, but after making an engagement letter,audit of financial statement is compulsory.