An external audit is an independent examination of an organization's financial statements and records, conducted by a qualified third party. 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 regulators. During an external audit, auditors review various documents, conduct interviews, and perform tests to gather evidence about the financial statements. The findings are compiled into an audit report, which outlines any discrepancies or areas for improvement. This report is essential for maintaining transparency and trust in the organization's financial practices.