An external audit is an independent examination of a company's financial statements and records, conducted by a qualified professional or firm. The primary goal is to provide an objective assessment of whether the financial statements accurately reflect the company's financial position 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, including balance sheets, income statements, and cash flow statements. They may also conduct interviews and perform tests to verify the accuracy of the information presented. The outcome is typically a formal report that outlines the findings and any recommendations for improvement.