Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of external audit

Definition of

external audit

Accounting

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)
  • The Key Components of an Audit Report
    This checklist outlines the key components of an audit report.
  • The Assurance versus Consulting Debate: How Far Should Internal Audit Go?
    by Michael Parkinson
    Internal auditors have described their discipline as an “assurance and consulting activity.” Such a definition immediately begs the question: what is the difference, and what should the balance be?Assurance has been variously defined. The dictionary definition, “a statement or indication that inspires confidence,” differs quite considerably from the statement to be found in Assurance Standards (quoted here from the Australian Assurance Standards...
  • Corporate Governance and Its Interpretations
    This checklist outlines definitions of corporate governance and their interpretation.
  • Has Financial Reporting Impacted on Internal Auditing Negatively?
    by Andrew Chambers
    It was unfortunate that the Institute of Internal Auditors (IIA) released its first consulting Standards, to add to its already existing assurance Standards, at exactly the time when Enron collapsed. “Implementation Standards” set out how the “Attribute Standards” and “Performance Standards” should be applied in the context of either assurance or consulting work. In 2007 the IIA announced that it had no plans to release further sets of...

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.

Back to top