| An external auditor has no bias in looking at the | | | | audit gives an in-depth look at the finances of the |
| finances of the company they are auditing and will | | | | company which is then used by other entities, such as |
| provide an independent and unbiased evaluation of the | | | | the company's bank, the government for taxation |
| finances. | | | | reasons and the shareholders of the company. |
| Typically, it is the job of the external auditor to give | | | | An external auditor takes a good look at the |
| their unbiased opinion on the company's financial | | | | accounting system and the procedures put in place by |
| statements as to whether they are legitimate and free | | | | the company and checks that they are used correctly |
| of misstatements. External auditors also review the | | | | and that they generate correct financial statements. |
| company's information technology procedures when | | | | The final draft of the external auditor's report |
| assessing the overall internal controls. The auditor must | | | | examines the overall financial stability of the company, |
| also look into any issues raised by regulatory or | | | | the expenses, receivables, and the information |
| professional authorities. | | | | technology of the company, to give an overall view of |
| Having an external auditor is essential a scrupulous and | | | | the company's position in the market. |
| accurate evaluation of a company's financial | | | | External audits are typically done after the year end |
| statements and controls. If the external auditor has any | | | | internal audit has been completed by the company's |
| relationship with the company or its employees other | | | | own accountants and auditors. The external auditor will |
| than for the audit itself, they must disclose the | | | | look at the internal audit of the books to ensure that |
| information in their final report. | | | | the information being used is the same and that no |
| Usually, if you wanted a job as an external auditor you | | | | changes have been made to the financial reports prior |
| would have to be a certified accountant with no ties to | | | | to his own audit of the company's financial statements. |
| the company or entity that you are evaluating. | | | | The differences in the internal and external audit should |
| External auditors delve into the depths of an entity's | | | | be nil--unless changes have been made. If changes |
| financial statements, looking for errors in calculations | | | | have been made, the company must disclose why the |
| and looking for problems or extraneous expenses. In | | | | changes were made and by who, and provide valid |
| many cases, it is the external auditor that finds people | | | | proof of change. If they cannot, then the external |
| who are embezzling from their company--by sifting | | | | auditor must report suspicious activity in the finances |
| through the finances of the company in minute detail. | | | | of the company. |
| In order to maintain a company, an external audit is | | | | External audit jobs are quite plentiful in the United |
| done on an annual basis to ensure compliance with the | | | | Kingdom as most companies are required to have an |
| local government. This is true in many countries | | | | external audit done annually or every two years to |
| throughout the world, and the UK is no exception. The | | | | maintain their business license. |