External Auditor

An external auditor is an audit professional who performs an audit in accordance with specific laws or rules on the financial statements of a company, government entity, other legal entity or organization, and who is independent of the entity being audited. Users of these entities' financial information, such as investors, government agencies, and the general public, rely on the external auditor to present an unbiased and independent audit report.

The manner of appointment, the qualifications and the format of reporting by an external auditor is defined by statute which varies according to jurisdiction of different countries. External auditors must be a member of one of the recognised professional accountancy bodies. External auditors normally address their reports to the shareholders of a corporation. In the United States, certified public accountants are the only authorized non-governmental type of external auditors who may perform audits and attestations on an entity's financial statements and provide reports on such audits for public review. In the UK, Canada and other Commonwealth nations Chartered Accountants and Certified General Accountants have served this role.

For public companies listed on stock exchanges in the United States, the Sarbanes-Oxley Act (SOX) has imposed stringent requirements on external auditors in their evaluation of internal controls and financial reporting. In many countries external auditors of nationalized commercial entities are appointed by an independent government body such as the Comptroller and Auditor General. Securities and Exchange commissions of countries also impose specific requirements and roles on external auditors, including strict rules to establish independence.

Read more about External AuditorOrganization & Services, Difference From Internal Auditor, Detection of Fraud

Other articles related to "external auditor, external auditors, external, auditors, auditor":

External Auditor - Detection of Fraud
... If an external auditor detects fraud, it is his responsibility to bring it to the management's attention and consider withdrawing from the engagement if management does ... Normally, external auditors review the entity's information technology control procedures when assessing its overall internal controls ... External Audiors' Liability to Third Parties Auditors may be liable to 3rd parties who are damaged by making decisions based on information in audited reports ...
Central Bank Of Ireland - Criticism
... In July 2007, the Comptroller and Auditor General called for an independent review of the inspection process for financial institutions carried out by the Central Bank ... issues of this nature and this magnitude would have been picked up” by the external auditors ... a February 2010 review by the Comptroller and Auditor General, the organisation admitted that it paid for 52 spouses of staff to go on foreign trips over a two-year period ...
Auditor Independence
... Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business ... The concept requires the auditor to carry out his or her work freely and in an objective manner ... Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit ...
Center For Audit Quality - Investor Education
... The first video, “The System of Investor Protection,” explains the roles of the external auditor, the audit committee chair, the chief financial officer, the internal auditor, and ... reporting system Ledger Lines, an external auditor with a granite chin, who explains the roles and responsibilities of Lotta Charts, a CFO and a whiz with ... The second video, “The Financial Statement Audit,” features external auditor Ledger Lines explaining the audit process, including the risk assessment, selection of the audit team, collection and ...

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