What are the limitations of internal auditors?

LIMITATIONS OF INTERNAL AUDITORS.

        *  Internal Auditors cannot achieve the same degree of independence as required of the external external auditors.

        *  Full time internal auditors are employed by the entity and rely on the entity for their job and salary.

        *  Internal audit is not a regulatory requirement, there is no requirement for internal auditors to be professionally qualified for the work they do. It is therefore a matter for the entity setting up the internal audit function what qualifications or experience it requires of the members of its internal audit team.

        *  Internal audit reports are not accepted by shareholders and therefore it is for only management use and the company has to conduct external audit despite the fact that it has conducted internal audit or not, as such it results in additional costs for the company for hiring internal auditors.

        *  The work done by internal auditors is determined by management who are their employers and which is in contrast to the work done by external auditors. The external auditors' work is determined by statute ( law).

Internal Audit Charter presented by CAE ( Chief Audit Executive) & approved by the board includes all limitations of the internal audit activity.