Difference between Internal and External Audit

External auditors focus more on presentation of financial statement. Where else internal auditors focus more on controllership from account reconciliation to internal controls process. The problem with external auditors they are not really independent. I’m saying this because external auditors does not quality an account for missing backup, close open item on timely manner and other controllership issue.

I belief this is because, of their appointment as auditors on yearly basis and their services is paid by the company.

My opinion – There should be an independent body to oversee these controls like SEC in US but this is only applicable for listed companies. And in Malaysia I don’t see Bursa taking the lead in account policy and controllership.

Small and medium companies do not have the fund to set up their own Internal Audit committee and they are not regulated. I would suggest the tax department provide some kind of internal audit support for SME.