April 2022
Beginner
535 pages
11h 35m
English
Content preview from The Finance Book, 2nd Edition
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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 independent examination of a company’s financial statements carried out annually by auditors. Auditors are qualified professionals, appointed 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 correct. Auditors must be independent of those who have responsibility for preparing the financial statements (directors) and have no vested interest in the performance ...
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