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Southern African Youth Project

External Audit (Outsourced)

An examination that is led and conducted by an independent accountant is known as External Audit. The purpose of such audit is most commonly to result in a warranty and certification of the firm’s financial statements. Many investors and lenders require such certification and is for all publicly held businesses

Another major objective of an external audit of financial statements is to regulate if in the opinion of an auditor, the statements are presented fairly in all respects, do they show a fair and true view in all respects of the financial position of the company, results of cash flows and operations.

An external agency brings out a report and measurement on the state of a person’s or business’ finances. A common example of such audit is an audit conducted by the IRS (Internal Revenue Service) that ensures that the person or business being audited has paid the apposite amount of taxes.