By Leanna Kelly The Securities and Exchange Commission (SEC) requires public companies to issue financial statements. Before these statements become available to investors and the public, they need to undergo an external audit. This is an audit performed by an independent (external) accountant.
An external audit serves as an objective evaluation of a company’s financial records. Auditors make sure that the information presented is accurate, verifiable and transparent—and that it supports any financial claims made. It’s an important and imperative process for maintaining reputability as a public company.
External audits typically follow internal audits as part of a multifaceted approach to financial statement verification. …read more
