External Audit
Definition of External Audit as it relates to Business, Accounting Principles
External Audit refers to an independent examination and evaluation of an organization's financial statements and accounting practices to ensure that they are in accordance with established accounting principles and regulations. This process is conducted by qualified external auditors who are not employed by the organization being audited. The primary objective of an external audit is to provide an unbiased assessment of an organization's financial health and compliance with applicable laws and regulations, thereby enhancing transparency and credibility for stakeholders such as investors, creditors, and regulatory bodies.