Final answer:
While internal auditors maintain the effectiveness of internal processes, external auditors provide an independent assessment of a company's financial statements, which is typically a legal requirement for public companies. Therefore, having internal auditors does not eliminate the need for external auditors.
Step-by-step explanation:
The question "If a company has internal auditors, does it need to have external auditors?" addresses the practices of audit functions within a business. The statement can be considered false since companies, especially publicly traded ones, are typically required by law or regulation to have their financial statements audited by independent external auditors, even if they have an internal audit function.
Role of Internal Auditors
Internal auditors are employed by the company to provide ongoing assessment and improve the company's financial and operational processes. Their primary role is to monitor the effectiveness of risk management and ensure that the company's internal controls and corporate governance are operating effectively.
Role of External Auditors
On the other hand, external auditors are independent from the company and are appointed to provide an objective examination of the financial statements, which adds credibility to the financial reports prepared by management. This independent verification is crucial for stakeholders, such as investors and creditors, who rely on the accuracy of the financial information.