Audits

• External Audit

External audit is an audit carried out to examine periodically, systematically and objectively in which an examination of the books or records of a report is carried out by a third party as an independent auditor. The purpose of conducting an external audit is:

• Examine and ensure that financial reports from past performance and current financial positions comply with proper principles.
• Conduct an objective evaluation of the risk and internal control framework that runs in the company.
• Perform systematic analysis of ongoing business processes and controls.
• Reviewing the existence and value of assets owned by the company.
• Examine and discover major frauds and irregularities in the company's performance.
• Give opinions on what needs to be corrected, enhanced, or changed at the end of the report.

• Internal Audit

Internal audit is the process of assessing and evaluating business management by company management, including how the financial performance and accounting reporting processes are structured. This is done so that a company's performance report does not contain defects, both in terms of administrative and intrinsic.

In addition to giving evaluations, an internal auditor will usually also provide input if performance reports (especially those related to finance) contain things that reduce favorable reputation. So that when the report is brought to the external audit stage, the company will be free from the risk of receiving an unfavorable final audit opinion.