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The purpose of external audit is for the auditor to express an opinion on the truth and fairness of financial statements.
An external audit process ensures that a company's internal controls, processes, guidelines and policies are adequate, effective and in compliance with governmental requirements, industry standards and company policies. This type of audit also ensures that reporting mechanisms prevent errors in financial statements. Audit report users include investors, company management, regulators and business partners---such as lenders, suppliers and creditors.
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