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External Auditors vs Internal Auditors in UAE

The basic purpose of an audit is to check the financial statements of the company independently without any sort of partiality. The process of audit is carried out in order to release an opinion on the financial statement of the company on the basis of its records.

The audit can be grouped into two categories including internal and external audit. Both have their own advantages and both come with their own separate benefits. Although both the types of audit are very good for the health of the company, yet the internal audit is not mandatory for the company by nature. Therefore, it can just be conducted for reviewing the internal activities of the company. The company determines the work area in case of internal audit.

On the other side, the external audit is carried out by the third party as it is an obligation to check the performance of the company and its compliance as per the UAE rules and regulations. The external auditors in Dubai, UAE perform the task of externally auditing financial statements for the client businesses and give their independent opinion on the basis of the findings in those financial statements of the companies.

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Although the process of both internal and external audit is almost the same the differences do exist between both the types.

Difference between the Internal and the External Audit Functions

Working Area

Internal auditors are the employees of the company whereas the external auditors are the third-party workers who are appointed from outside from the audit firms in Dubai.

Hiring Requirement

Internal auditors are hired by the company itself whereas the external auditors get appointed through the vote of the shareholders.

CPA Requirement

Being a CPA is not a requirement for the internal auditors but this is not so for that of external auditors. The external auditors must have to be CPAs for directing their activities properly.

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The internal auditors working in different companies are answerable to the management of the company whereas, the external auditors are answerable to the shareholders for what they do and how they do.

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Format Reports

The reports issued by the internal auditors can be in any format whereas the same issued by the external auditors should be in particular formats for generating their independent opinions regarding the financial statements of the companies.

Use of the Reports

The reports issued by the internal auditors are used by the management of the company whereas that issued by the external auditors are used by the stakeholders of the company.

Assistance Provided

The internal auditors not only generate their opinions. But also advise the companies and provide them with consultancy services as well. These services help the company in becoming better in order to get saved during the external audit as the external auditors must not be partial at any cost. They must not support the clients during the audits.

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The risks and the practices of the company are considered during the audit by the internal auditors whereas the external auditing companies in Dubai look into the financial records of the company properly and then generate an opinion as per their findings.


There is no proper timing for conducting the internal audit in a company. The internal audits may be carried out throughout the year in a company from time to time. Whereas the eternal audits are carried out at regular intervals in a year. The interval must not be less than 6 months. Most of the external audits are either carried once in a year. Or twice every 6 months depending on the need and operational structure of the business.

So, it is pretty much clear now that although, both the tasks may look similar but are actually not. They come up with a number of differences which are really important for the businesses to know. Investors especially the ones with no idea about the laws and orders in the UAE. Must know what kind of services do they need in order to complete the functions of the company. Examining the financial statements of the company and then working for the betterment is a true need of the company. If the company turns a deaf ear to all of this, it will create a number of problems for it.

Top audit firms in Dubai

Looking for the bets auditing firm in UAE, auditing firms in Abu Dhabi? FAR is the best option. It has been known for its great services for quite a time. You should really get auditing firms in Dafza, auditing firms in Jafza services in order to make sure that you do the audit right. In this way, you can make your company and its functions better than before. Also, this can make you pick out the frauds that may harm your company.

So, you should really look into the matter properly or else you will be left behind. Farahat and co. have expert solutions for all your problems.  By taking its services, you will get stress free. Because the professionals working here will take away all your stress by dealing with the stuff effectively.

For more information and consultancy services visit us or contact us and make your life better.

Jose’s entire educational and professional career has circled around audit and assurance. While in India, he became a CPA and worked as an accountant and an auditor. Afterwards, he relocated to Dubai, where he joined Farahat & Co. as an auditor. He is currently assisting UAE mainland and free zone businesses with their compliance needs. With a reputation for proficiency, quality, and reliability, clients refer to Mr. Jose for independent assessments of organizations structures and operations.