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Home > QFINANCE Dictionary > Definition of external audit

Definition of

external audit


periodic independent audit of firm's accounts a periodic examination of the books of account and records of an entity conducted by an independent third party (an auditor) to ensure that they have been properly maintained; are accurate and comply with established concepts, principles, and accounting standards; and give a true and fair view of the financial state of the entity.

Related definitions of "external audit"

Recommended Further Reading (Term count)
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    This article was first published in Quantum magazine.The inability of independent nonexecutive directors (INEDs) to rein in banks’ excesses has been highlighted in the wake of the financial crisis. Brandon Davies, an INED himself at Gatehouse Bank, examines whether proposed reforms to strengthen their role go far enough.
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Definitions of ’external audit’ and meaning of ’external audit’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’external audit’ and other financial terms with our online QFINANCE Financial Dictionary.

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