Comments on: Rentokil-KPMG deal seen to threaten independence http://neilmcintyre.ca/rentokil-kpmg-deal-seen-to-threaten-independence/ From external to internal audit Tue, 04 Oct 2011 13:28:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Neil http://neilmcintyre.ca/rentokil-kpmg-deal-seen-to-threaten-independence/comment-page-1/#comment-3476 Neil Fri, 04 Sep 2009 12:24:10 +0000 http://neilmcintyre.ca/?p=566#comment-3476 It has more to do with who the auditors "work for". External auditors report to shareholders on the financial statements (most often - sometimes there are special reports on the functioning of controls related to the statements) whereas internal auditors report to management (and the audit committee) on a wide range of operational, financial, compliance and (if they're lucky) strategic risks and controls. See my follow-up post from this morning on how the Institute of Internal Auditors (of UK and Ireland) feels about the deal: <a href="http://neilmcintyre.ca/iia-keep-internal-and-external-audit-separate/" rel="nofollow">IIA: Keep internal and external audit separate</a> It has more to do with who the auditors “work for”. External auditors report to shareholders on the financial statements (most often — sometimes there are special reports on the functioning of controls related to the statements) whereas internal auditors report to management (and the audit committee) on a wide range of operational, financial, compliance and (if they’re lucky) strategic risks and controls.

See my follow-up post from this morning on how the Institute of Internal Auditors (of UK and Ireland) feels about the deal: IIA: Keep internal and external audit separate

]]> By: Hassan http://neilmcintyre.ca/rentokil-kpmg-deal-seen-to-threaten-independence/comment-page-1/#comment-3473 Hassan Thu, 27 Aug 2009 19:00:18 +0000 http://neilmcintyre.ca/?p=566#comment-3473 This may be due to my lack of knowledge, but at the end of day both functions [ IA and EA ] do the same thing...make sure the numbers "add up" - to put it roughly. So what difference does it make if they are independent or not? This may be due to my lack of knowledge, but at the end of day both functions [ IA and EA ] do the same thing…make sure the numbers “add up” — to put it roughly.

So what difference does it make if they are independent or not?

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