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External Audit
(redirected from Outside Audits)

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External Audit
A measurement and report on the state of a person's or business' finances, made by an external agency. A common (and feared) example of an external audit is an audit by the IRS, which is done to ensure that the person or business being audited has paid the appropriate amount in taxes. Often, companies hire audit firms to look at their financial states and to receive an objective assessment. It is also called an outside audit. See also: Internal audit, Audit.

external audit
An examination of a company's records and reports by an outside party. Also called independent audit, outside audit. Compare internal audit.


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Seventy-two percent of respondents whose companies paid for outside audits said they were worthwhile investments and 54 percent said they resulted in the discovery of significant security problems.
He questioned why it took so long to identify deficiencies, especially since similar outside audits had been done in previous years.
The Senate Finance Committee is considering changes that would * require greatly increased disclosure, * require outside audits of many charities, * stiffen the rules covering credit counseling groups, and * require non-profits to re-file with the Internal Revenue Service every five years to justify their continued non-profit status.
 
 
 
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