Αποτελέσματα Αναζήτησης
28 Ιουν 2024 · External audit is the process where a third-party audit firm examines a company’s financial statements and reports to assess its performance in profitability, liquidity and operations.
Assessing audit quality is therefore a key task for audit committees. We have designed this toolkit to be a pragmatic guide to allow them to conduct the assessment and identify areas where improvement might be needed. In updating this toolkit in 2020, we took account of:
This document offers practical guidance and direction for audit committees seeking to discharge their duties and responsibilities to conduct an assessment of the effectiveness of the external audit process and to report how they have done so.
External audits, also known as independent audits, are conducted by certified public accountants (CPAs) or audit firms outside the organization being examined. The primary objective is to provide an unbiased assessment of the company’s financial statements, internal controls, and compliance with accounting standards and regulations.
Definition. External audit is the process of independent evaluation of the company’s financial statements by a qualified independent third party, the external auditor. In this case, auditors review the transactions and balances of the company’s accounting records to determine whether they are complete and accurate.
External audits are used to verify the accuracy, correctness, legality and reliability of information, systems or processes in an organisation. The external party performs an objective assessment and evaluates compliance with standards, regulations, policies or procedures.
Audit committees in the UK have been reviewing the effectiveness of their external auditors for a number of years but recent changes to the UK Corporate Governance Code focus attention on the robustness of the audit process and how the external audit process has been assessed by the Audit Committee.
