ACCA AAA ^UK Syllabus D. Audit of Historical Financial Information - Internal v External Audit - Notes ^{3 / 8}

Internal Audit

• Dictated by management - planning follows this

• However, good corporate governance would allow IA a degree of independence over objectives

External Audit

• Ensure accounts free from material misstatement and prepared in line with reporting framework.

• Planned in accordance with ISAs

• Work planned by themselves

Internal Audit

• The amount / type gathered would depend upon the objective set

• Eg It may just be a check that assets exist, with no concern over their value

External Audit

• Governed by IAS 330 - gather evidence to address misstatement risk

• The risk would have been analysed during planning and in the light of subsequent evidence

Internal Audit

• Determined by the nature of the assignment

External Audit

• Determined by statute & ISAs 700/5/6

• Communicate to stakeholders