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.
They also examined several outside audits from previous periods, focusing on our carrier's claims-adjustment operations and physical loss-control practices.
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.
Seedling's management team is currently completing outside audits of the company's FY 98, 99, and 2000 operating results.
A 1996 series of outside audits of the overhead charged by a contractor and its subcontractors found $4.
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.
In those cases, it's more proof that an outside audit is the way to go.