Author: Abdulqader Ahmed. CPA, CIA, CMA, MPAcc.

10 Differences Between Internal Audit Manager & Audit Committee Member

Aspect Internal Audit Manager Audit Committee Member

Serves on a committee responsible for
Manages the internal audit function within the oversight of the organization’s financial
organization, focusing on internal control systems, risk reporting, internal controls, and audit
Role management, and governance processes. functions.
Appointment Typically appointed by audit management. Appointed by the Board of Directors.
Reports functionally to the Audit Committee and
Reporting Line administratively to senior management. Reports to the Board of Directors.
Focuses on evaluating the effectiveness of internal Focuses on oversight of financial reporting,
controls, risk management, and governance processes compliance with laws and regulations,
Focus Area within the organization. internal audit, and external auditors.
Operational Directly involved in the day-to-day activities of Not involved in the day-to-day operations
Involvement auditing within the organization. but provides oversight and guidance.
Has authority to oversee the internal audit
function, select and appoint external
Operates with authority granted by senior management auditors, and review financial statements
Authority and the Audit Committee to conduct audits. and audit findings.
Responsible for reviewing the effectiveness
Responsible for planning and executing internal audits, of the internal audit function, the integrity
reporting findings, and making recommendations for of financial statements, and compliance
Responsibilities improvements. with legal requirements.
Requires a broad understanding of financial
Requires in-depth knowledge of auditing, accounting reporting, governance, and risk management
principles, and the specific operations of the principles, but not necessarily detailed
Expertise organization. auditing expertise.
Oversees the relationship with external
auditors and reviews their reports, but
Engagement with Directly manages and interacts with internal audit staff typically does not engage in direct auditing
Auditors and may coordinate with external auditors. activities.
Aims to add value and improve the organization’s Aims to ensure the integrity of financial
operations through systematic, disciplined approaches reporting, the effectiveness of the internal
to evaluate and improve the effectiveness of risk control environment, and compliance with
Objective management, control, and governance processes. legal and regulatory requirements.

Author: Abdulqader Ahmed. CPA, CIA, CMA, MPAcc.