A company’s financial statements are examined for correctness and compliance with all relevant laws and regulations by an external audit. Additionally, the auditor confirms that the financial records and reports accurately depict the performance of the business.
Financial statements for investors must be published by all publicly traded companies. To make sure that they give a complete and accurate view of a company’s financials, these records must be independently audited. Non-profits must also submit to audits in order to maintain their tax-exempt status.
Private businesses are not required to regularly undergo external audits, yet some still do. External audits typically assist them in increasing client confidence or provide them with additional documentation to provide to lenders when seeking for credit.
A third-party auditor who is independent of the organisation and does not have an interest in the audit’s results conducts external audits. Although there are different requirements for certification, external auditors must be certified accountants with credentials and professional accreditations.
Download the Brochure: External Audit in the Middle East