April 2017
Beginner
360 pages
7h 19m
English
Content preview from The Finance Book
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20 External financial audit
‘They were auditing us, and if something was wrong I figured somebody would say something to me.’
Kelvin Sampson, head coach, Houston Cougars
In a nutshell
An external audit is an external examination of a company’s financial statements carried out by independent auditors. Auditors are qualified professionals, appointed annually by shareholders to provide an independent opinion on whether the financial statements present a true and fair view.
An audit gives shareholders confidence that the numbers reported in the balance sheet and profit and loss account are true and fair. Auditors must be independent not only of the directors (who have responsibility for the financial statements) but also they must have no vested ...
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