Gartner defines the external audit services market as professional services dedicated to providing independent evaluations of an organization’s financial statements and controls. These third-party-managed services ensure accuracy, reliability and integrity of financial reporting, while enhancing transparency. The market encompasses service providers that offer expertise in financial statement audits. Auditors’ independent assessments aid stakeholders in making informed decisions based on the financial health, regulatory reporting requirements and compliance status of the organization. This oversight minimizes financial mismanagement and fraud, thereby protecting the interests of all stakeholders involved. Audit services are regulated by professional bodies and standards boards, and auditors must adhere to strict professional standards and ethics to maintain their license and practicing rights.
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.