Several firms have internal audit function to govern their business operations. The head of internal audit department of one of your clients has invited you to give a talk to the members of his department during their annual training week. He would like your views on the different roles of external and internal auditors, the type of work that each carry out and their reporting responsibilities. Required: Draft notes that you will use when giving your talk, paying particular attention to the differences and similarities of the following features of internal and external auditors:

(i) independence;

(ii) the work carried out on systems of internal control and operations;

(iii) reporting responsibilities.