An external audit is an independent examination of an organization's financial statements and records, typically conducted by a third-party firm. The primary goal is to provide an objective assessment of whether the financial statements are accurate and comply with relevant laws and regulations. This process helps ensure transparency and builds trust with stakeholders, such as investors and regulators. During an external audit, auditors review various documents, conduct interviews, and perform tests to verify the information presented. The outcome is usually a formal report that includes the auditor's opinion on the financial statements, which can influence decisions made by shareholders, creditors, and other interested parties.