external audit
Independent financial examination
An external audit is an independent examination of an organization's financial records, conducted by auditors from outside the company.
Unlike internal audits performed by employees, external audits provide objective verification for shareholders, regulators, and the public: The firm's external audit revealed no irregularities.
Public companies typically require annual external audits by certified accounting firms.
- auditorsFinancial statement reviewers
- Sarbanes-Oxley ActCorporate financial reporting law
- going concernProfitable, continuing enterprise
- red flagsIndicators something's wrong
- reviewCritical written assessment
materiality · accountability · Big Four · transparency · risk assessment · statutory requirements · fiduciary duty · evidence collection · shareholders · report · governance · financial statements · annual report · regulatory agencies · standards · oversight · independent · third party
- investigationsinvestigation report, investigation, review, FBI investigation, probe
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- audits
- financial controlsinternal controls, auditing, financial oversight, checks and balances, authorization
- financial reportsannual report, quarterly report, income statement, balance sheet, cash flow statement
- oversightoversight committees, oversight board, review, auditors, supervisor