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 the accuracy and fairness of the financial information presented. This process helps ensure compliance with laws and regulations, and it enhances the credibility of the financial reports for stakeholders such as investors, creditors, and regulatory bodies. During an external audit, auditors review various documents, conduct interviews, and perform tests to verify the integrity of the financial data. The outcome is usually a detailed report that outlines the findings and may include recommendations for improvements. This report is essential for maintaining transparency and trust in the organization's financial practices.