The purpose of external audit services is to examine the company's financial records and statements to reassure shareholders, investors, financial institutions, and other stakeholders about the correctness of a company's financial statements. The provider of external audit services is an independent body that publishes an audit report after the completion of auditing for a particular company. The audit report is the summary of the auditor's findings, opinions, and observations about whether the financial statements are free of material misstatement, presented fairly, and compliant with all the applicable accounting standards.
Internal audit services are a systematic and independent evaluation of an organization's operations, internal controls, risk management and governance processes. It is conducted by an internal audit team or in combination of co-sourced and outsourced teams, which operates independently and reports directly to the board of directors or an audit committee. The auditing team also ensures through their assessment that organization adheres to applicable policies, procedures, laws, regulations, and industry standards, along with identifying gaps and making recommendations for their improvements. Furthermore, organizations periodically undertake EQA to assure stakeholder that their internal auditing services are in line with professional standards.