The overall idea of an external auditor is that it’s a third-party professional who performs an independent review of an organization's financial records. There is one of the major works include with findings of any fraud. They work as an external individual without any biasness.
An external auditor must have to work extraordinarily to satisfy the overall organizational needs and gain the trust over the internal authorities while control the parts of internal auditors.
An external auditor works for to provide nearly accurate or unbiased report of the entity which will reflect the overall financial condition of the management and corporate ethics.
External and internal auditors may perform similar, but their work responsibility varies in many ways. Depending on the needs or law an entity might rely on the external auditor. Over all these, by performing separately an external auditor must have to follow the basic rules and regulation while prepare or handover any report to the entity.
An external auditor or the activities of an external auditor covers everything which is not limited to- appropriate fiscal requirements, accounting standards, and other legislation governing the financial records of the entity. An external auditor must have to very strong analytical understanding of overall situation. An external auditor must have to work individually and diligently for the organization. They can work in various areas which includes with profit loss accounts, balance sheets, sales ledger, trial balance or payroll etc. They must have to determine and maintain proper use of accuracy and proper functioning of the overall system and adequacy to control the internal audit from externally within it. An external auditor must have to demonstrate the ability of preparing any non-bias report and examine the accounts of an entity following the legal requirement and accounting standards.
An external auditor prime responsibility is to identify an items or criteria which has major or minor possibility of causing the financial statement to be materially misstated. An external auditor is also self-employed as consultants and paid by the companies which is auditing. Also, they have to design also execute tests which will determine whether such misstatements have occurred or not. Moreover, there are certain public company audits which test the effectiveness of internal to control over financial reporting. To understand it specifically there is a process flow of external auditor which is firstly to understand the business and control the information flow then assess overall financial reporting risks, ten design integrated the audit plan, and when the plan is working accordingly lastly they report the results which includes with audit opinions and internal control findings. Despite all an external auditor has to trained as to challenge the truth of the material whenever he finds any mistakes or fraud. Also identify all the areas which needs to be improved. For instance, an auditor might notice that a company could be more efficient in its accounting, internal controls. In this situation, he might suggest solutions like reducing overhead through staff reductions or better overall inventory control. There might be a possibility of facing problematic irregularities, which are misstatements or lies from client. Any organization can manipulate the data or financial performance. This might mislead investors also ignore the miscalculations.
The External Audit Coordinator must have to keep the audit focused to resolve any audit issues as soon as they are made known also keep informed of the auditor’s progress.
FM Consulting International external audit team’s main objective is to give reliability and credibility to the financial reports that go to shareholders. They have been maintained and determined the accuracy of work and organize the overall report to get accurate financial statement.
Also, an external auditor has to reports to the shareholders who are outside the governing structure of an organization which also done diligently by FM external auditor team. FM external audit team has always maintained the un biasness in any work. There are some initial procedures which an external auditor must have to follow which are not befriend with the clients, manager or any employee of that particular organization.
These has been maintained to bring accuracy and un bias ness. Additionally, when an outside auditor is specialized in a particular field of business, he often has to learn the ins and outs of a specific industry before conducting an audit. Which makes it easier for an external auditor to recognize problems. The external audit team of FM provide an independent opinion to the shareholders on the truth and fairness of the financial statements. Also, they provide reasonable assurance to the shareholders and ensure that benefits for the company are maximized through suggestion of operational improvements for management. Which is known as statutory audit also.