Statement 1. External auditors generally consider operations a whole relative to objectives while internal auditors focus primarily on financial systems that have a direct, significant effect on the amounts reported in financial statements.Statement 2. External auditors consider even small amounts of fraud, waste, and abuse as symptoms of underlying issues. The internal auditor considers just what materially affects the financial statements since that is the nature of their engagement.
A. Only Statement 1 is correct. B. Only Statement 2 is correct. C. Both statements are correct. D. Both statements are wrong.