Five Major Types Of External Audit
What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.
1- Economic Forces
2- Social and Cultural Forces
3- Political, Governmental and Legal Forces
4- Technological Forces
5- Demographic Forces
Introduction
Before we discuss the five major types of an external forces that should be examined as a part of an external audit:
1- The definition of the external audit
External Audit Definition
An external audit, defined as a company audit which is performed by a party which is not a department or employed by business to be audited, are very commonly performed. The external audit approach has 2 main purposes: The company believes an outside party will be more efficient at the work or because a governmental entity, such as the IRS, is auditing the business.
External Audit Explanation
An external audit, explained also as a voluntary or non-voluntary audit performed by a 3rd party, is a necessary tool. It provides both business and government with a valuable check of company accounting. The internal and external audit differences effect the value of the audit in many ways. Generally, an external audit conflict of interest is less likely to happen than when an internal audit occurs.
When contracted from the business controllers, the external audit process happens for 2 reasons. First, the company can receive more efficiency by using an external auditor. This could happen for many reasons: company
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