Theory Vs. Practice

This chapter generally describes the roles and responsibilities assumed by an organization's internal and external auditors. In theory, internal auditors are responsible for assessing the extent to which financial data conform to the expectations and standards established by management, and external auditors render an independent opinion of the fairness of financial statements in conformity with generally accepted accounting principles. In practice, however, both internal and external auditors often provide services to an organization that goes far beyond these limited descriptions. Use your own background and work experience to describe some of the services you've seen performed by internal and external auditors that go beyond the general roles described above.