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.

external audit

An examination of a company's records and reports by an outside party. Also called independent audit, outside audit. Compare internal audit.
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.
Two recent outside audits had given these practices clean bills of health, but they were still riddled with problems.
We are launching our own investigation and reviewing the past outside audits that demonstrated to us that the bank performed appropriate AML standards and procedures.
A 1996 series of outside audits of the overhead charged by a contractor and its subcontractors found $4.
It is clear from the survey results that the outside audits being conducted by regulators make significant demands upon health care providers, large and small, non-profit and for-profit, but that the burden of audits appears to be falling disproportionately on the not-for profit sector.
We must immediately conduct outside audits of our department and make tough decisions.
10 programs -- which could employ up to 8,000 people -- are exempt from outside audits, spending limits, civil service regulations, and legislative oversight.
IBAA recommended that "the FDIC exercise its authority and raise the size exemption for outside audits from $150 million in total assets to $500 million in total assets.
In those cases, it's more proof that an outside audit is the way to go.