How an external audit takes place?

Question

Accepted Answer

External audits are conducted by independent third-party firms to review an organization's financial statements and internal controls.

External audits are typically scheduled in advance and involve the auditors examining the organization's financial records, transactions, and processes.
Auditors will assess the accuracy and completeness of the financial statements, as well as the effectiveness of internal controls in place to prevent fraud and errors.
The audit process may include interviews with key personnel, testing of transactions, and verification of assets and liabilities.
At the end of the audit, the auditors will issue a report detailing their findings and any recommendations for improvement.
Examples of external audit firms include the Big Four accounting firms - Deloitte, PwC, EY, and KPMG.

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