Distinguish between 'internal control' and 'internal audit'.

Internal control system is a broad concept and it includes internal audit system as well. Internal audit system is comparatively a narrow concept. Internal control system is necessary for every organisation while internal audit system is to be implemented as per the suitability of the organisation. The primary objective of internal control system is to prevent the occurrence of fraud while the internal audit is primarily a backward looking activity. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. On the other hand, Internal control is the system of control established by the management in order to carry on business in an orderly and efficient manner, ensure adherence to management policies, safeguard assets and completeness of records.