Is there an external auditor for your organisation What func

Is there an external auditor for your organisation? What functions does the auditor

carry out and how do you view it?

Solution

Most of the organization have external auditor because external auditor will help in maintaining transparency in the financial reporting. Apart from this external auditor also helps in serving some legal formalities.

Following are the main functions of external auditor;

1. External auditors provide an opinion on the financial statements.

2. External auditors help in understanding the entity and business environment.

3. External auditors help in making ensure about compliances.

4. External auditors help in providing credibility about the financial statements.

5. External auditors helps in verifying internal auditing system of the firm & company.

6. External auditors provide independency about the financial reporting of the organization.

7. External auditors work towards promoting confidence & trust in financial reporting system.