External Audit
About External Audit
An external audit is a financial examination carried out by a party unconnected to the organization or division that is being audited willingly or involuntarily. An established set of guidelines or legislation govern the conduct of an external audit.
A firm, government agency, other legal entity, or organization's financial statements are audited by an external auditor who is independent of the entity being audited and who does it in compliance with certain laws or norms.
Why is External Audit important?
An external audit inspires trust in shareholders. An unbiased analysis of the financial accounts can show shareholders that the business is being operated in their best interests and can draw their attention to any problems that may not have been brought to their attention.
An external audit gives you information on the challenges and opportunities in the business environment that might affect how you allocate resources, create new products, enter or leave markets, and make other strategic choices.
Who should take the External Audit Exam?
- Auditors
- Finance professionals
- Aspiring accountants
- CPA students
- Accounting students
- Anyone in business wanting to learn the external audit process
External Audit Certification Course Outline
- Audit process
- Initial engagement, costs, timing, and the engagement letter
- Review the planning phase, and what is involved
- Discuss audit testing, what is tested, what auditors are looking for
- Review the account analysis process
- Understand what the auditor's report means and the types of reports they may issue
- Finalization of the audit and what is required post audit