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 ?
Two approaches have been employed in previous research to examine determinants of external audit fees.
When reliance is warranted, the internal audit work may affect one or more of the following aspects of the external audit work (CICA, 1989):
What Type of External Audit Should be Performed and by Whom?
The IRS has discretion to waive an external audit requirement in three circumstances.
BUSINESS AS USUAL: Customers at a branch of the AIB, which has announced its external audit is being put out to tender
The Institute of Internal Auditors (IIA) believes that a clear conflict of interest exists when the CPA firm that performs the external audit also has primary responsibility for the internal audit.
Our study of 186 family businesses shows that internal audit (59 percent) was more prevalent than external audit (46 percent).
Proposals to cut staff have been made in order to reduce expenditure, but this has met with opposition from trade unions which have demanded an external audit before they negotiate on anything.
Believe Housing Ltd wishes to appoint suppliers to provide internal and external audit services and tax advisory services.
This was disclosed by Felda chairman Tan Sri Shahrir Abdul Samad who said that all the necessary documents had been handed over to the external audit firm appointed by the Prime Minister's Department.
The body directed the Ministry of Ports and Shipping to submit a comprehensive report on the issue of external audit.
4 (BNA): The Ministry of Industry and Commerce has passed the external audit and renewed ISO 9001 Certificate

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