Learned the importance of internal auditing and the difficulties they
face performing their duties. It was explained that these auditors
have difficulty assigning values because their work is based on
assurance, knowledge, objectivity and insight. They were compared
to doctors in that their profession’s value comes from the quantity of
patients treated within a day, but it may reduce the care each patient
receives in favor of treating more. I learned that stakeholder
expectations from the audit are a way to assign value, which an
auditor will then determine whether they are realistic. Auditors also
assign value by asking clients whether they have received value from
their audit, but that may lead to an emotionally-based response or
incorrectly asked questions (Miller & Rittenberg, 2022).
When compared, external auditors have a far easier time determining
the value of their services. Their main job is to uncover fraudulent or
insufficient procedures and recommend changes for improvement.
They determine any potential risks within the company as well. This
is direct, clear value because the company very clearly benefits from
their work (The Value Added by External Auditing, 2021). Internal
auditors operate differently and therefore cannot have their work
valued as directly.
Reference List:
Miller, P., & Rittenberg, L. (2022, August 12). How Do You MEASURE
Internal Audit Value? Internal Auditor. Retrieved August 12, 2022,
from https://eds-p-ebscohost-com.ezproxy.snhu.edu/eds/pdfviewer
/pdfviewer?vid=0&sid=62980812-dc9a-4a60-92f2-
c2bb0590f408%40redis
The value added by external auditing. (2021, May 14). RSM. Retrieved
August 12, 2022,
from https://www.rsm.global/southafrica/news/value-added-
external-auditing#:%7E:text=External%20auditors%20can%20be
%20valuable,client%20with%20potential%20bad%20news.
