ABC Corporation, a global leader in the technology sector, has a complex financial structure with subsidiaries operating in various countries. The company decides to conduct a comprehensive audit to enhance its financial governance. Internal Auditing: The internal audit team at ABC Corporation is an integral part of the organization. Led by Chief Internal Auditor Sarah Reynolds, the team is responsible for conducting regular assessments of internal controls, risk management processes, and operational efficiency. Sarah's team works closely with different departments, identifying areas for improvement and ensuring compliance with internal policies and industry regulations. Their reports are shared directly with the company's management and board of directors to foster internal accountability and continuous improvement. External Auditing: ABC Corporation also engages the services of a reputable external audit firm, Smith & Associates. This external audit is conducted annually and is mandated by regulatory bodies to provide an independent and unbiased evaluation of the company's financial statements. Smith & Associates, led by Audit Partner James Thompson, scrutinizes ABC Corporation's financial records, ensuring adherence to Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The external audit report is subsequently shared with stakeholders, including shareholders and regulatory agencies, to provide assurance about the accuracy and reliability of the financial information. Question: Considering the roles of internal and external auditing in the case of ABC Corporation, which of the following statements accurately reflects a key distinction between the two? A. Internal auditors focus on ensuring compliance with external regulations, while external auditors assess internal controls. B. Internal auditors report directly to the company's management, while external auditors share their findings with external stakeholders. C. External auditors are responsible for continuous improvement within the organization, while internal auditors ensure compliance with accounting standards. D. Internal and external auditors have the same objectives, but they differ in the reporting structure.