External auditors would consider internal auditors effective if they are:

Here are some basics of internal and governmental financial auditing and operational auditing: Financial audit: A statutory requirement for registered companies, a financial audit is a review of a client's financial statements to ensure they are accurate. The goal is to obtain an independent opinion on the accuracy of the financial statements. Operational audit: A review of an organization's systems, procedures, and internal controls, the goal of an operational audit is to evaluate the efficiency and effectiveness of these systems. The audit may also make suggestions for... Show more

Here are some basics of internal and governmental financial auditing and operational auditing:
Financial audit: A statutory requirement for registered companies, a financial audit is a review of a client's financial statements to ensure they are accurate. The goal is to obtain an independent opinion on the accuracy of the financial statements.
Operational audit: A review of an organization's systems, procedures, and internal controls, the goal of an operational audit is to evaluate the efficiency and effectiveness of these systems. The audit may also make suggestions for improvement.
Internal audit: A company's assessment of its internal controls, including governance, compliance, security, and accounting processes. Internal audits can provide insight into an organization's culture, policies, and processes.
Compliance audit: A formal review of an organization's procedures and operations, the audit focuses on whether the organization is complying with internal rules, regulations, policies, decisions, and procedures.
Investigative audit: An audit that happens when there's a suspected risk of a security breach or if a breach actually occurs. 

Government audit serves as a mechanism or process for public accounting of government funds. It also provides public accounting of the operational, management, programme and policy aspects of public administration. Not only that, it also ensures accountability of the officials administering them.

Financial auditing would be concerned primarily with financial transactions, accounts, and financfal reports. 
Management (or operational or performance) auditing would be concerned primarily with the efficiency and economy with which resources are managed and consumed.

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