What is external audit?

An external audit is an independent examination of a company's financial statements, usually conducted by a third-party accounting firm. The goal is to provide assurance that the financial records are accurate and comply with accounting standards and regulations. External auditors review financial reports, internal controls, and other relevant information to express an opinion on whether the statements present a true and fair view of the company's financial position. This process helps build trust with stakeholders, such as investors and regulators, by enhancing the credibility of the company's financial information.