Your Company should periodically undergo an external, or third-party, audit of its financial operations to determine if they conform to requirements and are achieving the desired results.The External Auditing Policy and Procedure determines if the company presents financial information in accordance with established criteria and is in compliance with specific requirements. The procedure also determines if the company has designed and implemented effective internal controls over financial reporting and safeguarding assets to achieve stated control objectives. It applies to all financial operations. (10 pages, 1972 words)
Responsibilities: The Audit Team Leader is responsible for evaluating and selecting an External Auditor.
The CFO (Chief Financial Officer) is the main point of contact between the Company and the External Auditor and is responsible for coordinating Company audit activities and responses.
The External Auditor is responsible for preparing the Audit schedule and plan, conducting the Audit, keeping the Company informed of the audit’s progress, and reporting audit findings and results to the Company.
All Employees are responsible for cooperating with External Auditors during the course of the audit and for taking appropriate actions, where required, to correct deficiencies/weaknesses found in the audit.
- External Audits-Background
- Planning for an External Audit
- Supporting the External Audit
- Reviewing External Audit Results
- External Audit Follow-up
References Used in the External Auditing Policy Procedure
- Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements and Related Other Proposals (Auditing Standard #5)
- Generally Accepted Auditing Standards (GAAS), American Institue of Certified Public Accountants (AICPA); Statements on Auditing Standards (SAS) #95, 98, 102, 105, and 112 (June 2006)
- Uniform Accountancy Act, 5th Edition
Forms Included in the External Auditing Policy Procedure
- Corrective Action Plan Form