What it is
External audit (statutory audit) is an independent examination of an organization’s financial statements that is usually conducted for legal and statutory purposes.
External audit provides an independent opinion on how accurate and true an organization’s financial statements are, explaining whether or not they have been conducted in line with the Organization’s accounting policies or in accordance with a recognized general accepted accounting framework (GAAP) such as IFRS.
How it affects your business
If you are looking to obtain the highest levels of assurance, external audit is the answer. Shareholders, creditors, and private investors often need assurance that your financial statements accurately represent the true financial position and results of your organization.
External audit will allow you to:
- Ensure the credibility of published information, which instills trust in your company
- Facilitate the payment of goods, corporate tax, service tax, and other taxes when due, thereby avoiding interest, penalties, and investigations
- Comply with banking covenants
- Help prevent and detect material fraud and error
- Facilitate the purchase and sale of businesses
Why XB4
XB4 is your best choice for external audit, as we go the extra mile to assure you that all financial statements and business processes are accurate. Our team of experienced external auditors will go beyond your company’s internal sources to obtain the needed information, and will establish communication with:
- Your customers, to check outstanding receivable balances
- Your banks, to confirm cash or debt balances and terms
- Your vendors, to verify outstanding payable balances
- Your attorneys, for information on pending legal action
We also:
- Inspect and observe your inventory counting methods and implement test counts
- Keep a record on each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payrolls
- Keep a detailed work program to document the examinations and testing performed
