What is an external audit?

External audits are audits of financial records carried out by an accountant or accounting company that is completely independent of the client. The external audit can be made on the financial records of the individual, the business, non -profit organizations, the government or any other type of legal person. Audits of this type may be ordered by a regulatory agency or carried out at the request of an individual, business or organization as a means of ensuring compliance with standard accounting procedures.

The external audit value exists because the accountant performing the evaluation of financial records is considered to be any type of distortion or prejudice. Theoretically, this helps to ensure that the audit can proceed without any probability that incorrectness is taking place, and that the end of the audit is complete and fully accurate. External audit is often performed at least a year by accounting specialists who are employees of the company or organization have performed an internal audit. This two -point access to the evaluation of accounting recordsIt makes it impossible for inconsistencies to remain unconnected in financial records.

For organizations and businesses, it is not unusual to include provisions for external audit in documents such as the establishment or statutes that control the organization. This is especially true in non -profit organizations that rely on the contributions of members and other donors to work. The audit findings are often made available to members and others, allowing the recording of the gift and how the funds collected were used for transparent. Today it is not unusual for religious organizations and other types of non -profit organizations that will normally perform external audits and results published in favor of general membership and for for anyone who is interested in association with the organization.

The process of preparing for an external audit is somewhat simplified by adherence to a simple audit control list. A list of this type can be obtained from a company that is plannedAnna to perform an audit. In larger organizations, there is often an audit commission that is accused of reviewing the checklist and ensure that all accounting records are made available to an external auditor or larger audit employees if the organization has more places and subsidiaries. Today, the use of audit management software can speed up the process of performing a real external audit, which makes any apparent problems to be solved and resolved in a short period of time. The effective software package may allow the final statement of the auditors to record any repairs that have been made and be able to unsubscribe in accounting records as fully in accordance with any current regulations as standard accounting procedures.