外审用英语是什么？如何进行外审？

External audit is an important process that helps organizations to ensure that their financial statements are accurate and comply with the established accounting standards. It is usually carried out by independent and professional auditors who assess an organization\’s financial records, management practices and internal controls to identify any errors, fraud or compliance issues. In this article, we will explore what external audit is and how it is conducted.

What is External Audit?

External audit is an assessment of an organization\’s financial records and practices by an independent and objective auditor who does not have any direct interest in the organization. The aim of external audit is to provide reasonable assurance to stakeholders that the financial statements are accurate, complete and compliant with the established accounting principles and relevant laws and regulations.

The scope of external audit can vary depending on the size, complexity and nature of the organization. However, it usually involves a review of financial statements, accounting practices, internal controls, risk management, governance, and other relevant issues that can affect the accuracy and integrity of the financial information.

How is External Audit Conducted?

External audit is conducted through a structured process that involves several stages. The steps involved in the external audit process include planning, risk assessment, testing, reporting, and follow-up.

During the planning stage, the auditor identifies the objectives of the audit, the scope of the audit, the resources required, and the timeline for completion. The auditor also communicates with the organization\’s management to gather relevant information and to understand the organization\’s business and industry environment.

In the risk assessment stage, the auditor evaluates the risks associated with the organization\’s financial records and practices. The auditor identifies the key areas of risk, evaluates the internal controls, and develops an audit plan to address the identified risks.

During the testing stage, the auditor carries out procedures to verify the accuracy and completeness of the financial records. The auditor uses various techniques, including sampling, substantive testing, and analytical procedures, to test the financial statements and to evaluate the internal controls.

After completing the testing, the auditor prepares a report to communicate the findings and conclusions to the stakeholders. The auditor\’s report provides an opinion on the accuracy, completeness, and compliance of the financial statements with the established accounting principles and regulations.

Finally, the auditor follows up with the organization\’s management to ensure that the identified issues are addressed and the recommendations are implemented. The auditor also provides feedback to the organization\’s management to help them improve their financial practices and controls.

Conclusion

External audit is an essential process that helps organizations to ensure that their financial statements are accurate and comply with the established accounting principles and regulations. The external audit process involves several stages, including planning, risk assessment, testing, reporting, and follow-up. By conducting regular external audits, organizations can improve their financial practices, reduce the risk of fraud and errors, and provide assurance to their stakeholders that their financial statements are reliable.