who the external and internal auditors are? 1742

  • As a potential investor, How do I find out who did or performed the External and Internal Audits for the companies.
    Is there a way to find out?
    I went to the SEC’s site, and used the Edgar Database, but can’t seem to find it?
    Can someone be specific as to where I may find this information?
    Thanks in Advance.

  • I’m not certain on how to discover specific External Audits firms. However, when you see Internal Audit, it’s a reference to the audit staff for that specific company. For example, a major company will have their own employees working on a daily basis to help achieve audit and control functions within the Internal Audit dept.
    External auditors are then appointed on a contractual basis to perform a service and render an expert opinion on the company controls (both SOX and non-SOX related).
    Companies may even keep information related to the External Audit firm they are using confidential? One idea to research might be the company’s annual statement and it’s associated text (as there might be references or certifications for the audit firm mentioned).
    Good luck on finding this 🙂

  • External Auditors will have documented and signed an auditor’s report on the last set of financial statements. Unless the engagement is put out to tender in the following year, it should be the same external auditors for the current year. Generally, it will be the same auditor for a number of years (there may be som elegal requirements to rotate the engagement from time to time), as a new auditor always results in increased fees ( due to longer timeframe and a lack of ‘CAKE’ or Cumulative Audit knowledge and Experience).
    The same external auditor performs the SOX ext audit under what is oftern termed as the ‘integrated audit’, where both audits are documented in the same annual files.
    The Internal Audit function is normally managed internally. Whilst contractors/ consultants may be hired, it is the overall responsibility of Management.

  • ok EMM, thanks now
    How do I find out ‘who’ the External and Internal auditors are?
    Is it in the filing some where?
    which filing would contain - last set of financial statements? (10Q, 10K)
    Because I know that sometimes the Internal auditors, work with the External auditors to defend or remediate the gaps or deficiencies on behalf of the company, would this be referenced that identify who the ‘Internal’ auditors are? (the assumption is that the Internal’ auditors are contractors/consultants, and not an in-house staff)

  • whether they are consultants or contractors internal audit shoul dbe considered to be part of the company itself. Very few companies will outsource the head internal audit roles but may outsource the grunt work.

  • Denis is correct.
    YOu will never find out any further detail than this unless you know someone personally involved, in which case you may possibly be unable to trade.

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