Audits

The difference between internal and external audit are:

Internal auditors are company employees or outsourced services, while external auditors are appointed by shareholders or a third party.
Internal auditors work for the company management, while external auditors act independently and objectively.
Internal audit is a regular, continuous activity, while external audit is a yearly activity.
Internal audit is not compulsory, while external audit is compulsory.

In light of increasing regulation, employing an external auditor serves to strengthen company practice within the remit of government compliance. It is the job of an external auditor to identify areas of non-compliance, as well as any issues with fraud or abuse within the organization. Their findings and audit processes give businesses the confidence and reassurance that their information and the way they conduct business is suitable. Some jurisdictions have laws that state that annual audits are mandatory.