Internal vs. External Auditor
What's the difference?
Auditors are classified into two categories - internal auditors and external auditors.
Internal Auditors are employees of the audited agency. Staff of Internal Audit are employees of the Municipality of Anchorage. Emphasis is on providing the Municipal Assembly and the Mayor with objective information to determine whether the required high degree of public accountability is maintained, and to assist management in improving the efficiency and effectiveness of government operations and activities. To accomplish this, they focus on accountability, internal controls, and on improving management efficiency. Although internal auditors are Municipal employees, the Municipal Code provides a framework for them to operate with complete independence.(Anchorage Municipal Code 3.20.100, 3.20.110, 3.20.120, 3.20.130.)
External Auditors are not employees of the audited agency. The external auditor performs, under contract, an annual audit of the financial records of the Municipality and the Federal and State single audits. Their emphasis is on the fairness of financial representations. The certified public accounting firm of Mikunda Cottrell is currently the external auditor for the Municipality of Anchorage. The Municipal Assembly, Municipal Clerk's Office, is the contract administrator for the external auditor.