Business Ethics and Corporate Governance, Second Edition

TYPES OF AUDITORS

There are three types of auditors,⁵ namely, (i) internal auditors; (ii) independent auditors; and (iii) government auditors.

Internal Auditors

Internal auditors are employed by the organization for which they perform audits. Their responsibilities vary and may include financial statement audits, compliance audits and operational audits. They may assist the external auditors in completing the financial statement audit or perform audits for use by management within the entity. Internal auditors must have no operating involvement in activities they audit. An organization may have a small or very large internal audit staff. They cannot be independent as long as the employer-employee relationship exists. Independence is often accomplished ...