external audit

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

external audit

An examination of a company's records and reports by an outside party. Also called independent audit, outside audit. Compare internal audit.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Zidelis told the City Council Tuesday night, in response to the findings of an outside audit that identified "significant deficiencies" in the city's internal controls for financial reporting.
The outside audit, which was done by Sullivan, Rogers & Co.
Zidelis said many of the problems cited by the outside audit were not longstanding, but rather ones that seemed to have popped up during the previous fiscal year.
Within this environment, individual clients, corporate clients, and insurance companies which hire "insurance defense attorneys" to represent their insured are increasingly seeking outside audits of the legal bills submitted by their attorneys.
Likewise, before a lawyer may release any billing information to an outside audit service the lawyer must have the client's consent."[56] The Utah opinion further noted:
Outside Audit to Waive the Evidentiary Attorney-Client Privilege by Federal Court
The conglomerates have agreed to sharply cut debt loads, and new laws will soon require them to stop spending to prop up losing subsidiaries and submit their books to independent, outside audits.
Yes, there is talk of a "Citizen Legislature Act"; term limits for members and committee chairs; making use of the information superhighway to inform voters better; instituting outside audits of operations; reducing the number of committees and committee staff; and instituting new budget disciplines.
They also examined several outside audits from previous periods, focusing on our carrier's claims-adjustment operations and physical loss-control practices.
Two recent outside audits had given these practices clean bills of health, but they were still riddled with problems.
For example, recently the Board has contracted for independent private audits of two Federal Reserve Banks (Kansas City and Cleveland) to provide an independent evaluation of the Reserve Banks' control environments and the Board's examination procedures and to determine the feasibility of substituting, from time to time, outside audits for financial examinations by the Board's examiners.
In those cases, it's more proof that an outside audit is the way to go.