أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
He provides an independent check on the integrity of the the financial information prepared by the directors for the use of shareholders and other stakeholders.
For public companies he has a responsibility for forming an opinion on the extent to which the directors have complied with the specific corporate governance regulations imposed on them.
The external auditor is also required by ISA 260 to communicate with management periodically with observations arising from the audit that are significant and relevant to be management responsibility to oversee the financial reporting process.
The main objective of the external auditor is to serve the shareholders of the company by way of the opinion about the soundness of the preparation of the financial reports prepared by the company and they appear fairly in all the essential aspects and do not have any errors or fraud within the sample examination to complete the review of those listsThe work of the External Auditor shall be carried out by an independent professional person accredited by the competent authorities to carry out the work of auditing and auditing the accounts and shall be appointed by the shareholders at the Ordinary General Meeting of the CompanyIn terms of independence of the work, the external auditor is independent in the performance of work on the management of the company and takes the process of checking the lists and evaluating the work and opinion after the completion of the examinationThe External Auditor is accountable to all shareholders for his report on the audit and review of the financial statementsThe External Auditor shall work periodically during the reporting year and after the final reports and financial statements have been prepared and audited
Organizations like governments, corporations and universities rely on external audits to maintain themselves accountable to their boards of trustees and other interested individuals. External auditors like Certified Public Accountants have licenses that corroborate their skill. Moreover, their independent relationship to the firms they audit makes their reports trustworthy.
The external auditor studies important financial documents, such as invoices, the petty cash book, bank book, bank statements, stock sheets and bank conciliation statements. He reviews these papers in the privacy of a quiet place and interviews staff members in confidence as needed.
Part of the auditing process involves the detection of fraud. When the accounting statements of a firm are in line with established procedures and best practices, the external auditor reports them as being "true and fair." He makes qualifications for adverse details – misstatements, undisclosed fraud, insider loans and incorrect accounting policy. If there are too many misstatements, the external auditor gives declares the audit as adverse, an opinion that can bring reputational and legal consequences for the organization.
