What are internal audit and external audit?

Internal audit refers to the evaluation of the effectiveness of internal control, the authenticity and integrity of financial information and the efficiency and effect of business activities by the internal institutions or personnel of the audited entity. Internal audit is one of the three major types of audit alongside government audit and CPA audit.

External audit refers to the audit conducted by national audit institutions independent of government agencies, enterprises and institutions, and the audit commissioned by independent accounting firms.