Does the External Auditor have a wider scope of responsibility compared to Internal Auditors?

The statement is true; the external auditor does indeed have a wider scope of responsibility compared to internal auditors. External auditors are tasked with providing an independent assessment of the financial statements of an organization, ensuring that they are presented fairly and in accordance with applicable accounting standards. Their responsibilities typically extend beyond the organization itself, as they must consider the interests of various external stakeholders such as investors, regulators, and the public.

In contrast, internal auditors focus primarily on evaluating and improving the effectiveness of internal controls, risk management, and governance processes within the organization. While they also play a role in providing assurance on financial reporting, their scope is generally more narrow and centered on internal processes, compliance, and operational efficiency.

The difference in scope reflects the distinct roles that internal and external auditors play within an organization. Internal auditors are more involved in day-to-day operations, whereas external auditors provide an independent review of the organization's overall financial health and compliance with external standards.