What is the external auditor?

An external auditor is an independent accounting professional or firm hired by a company to review and verify its financial statements and ensure they are accurate and in compliance with accounting standards and regulations. The external auditor provides an objective assessment of the company's financial health and helps to build trust and confidence among stakeholders, such as investors, creditors, and regulators.

An external auditor is an independent professional who is hired by a company to review and evaluate its financial statements. The external auditor's job is to provide an opinion on whether the financial statements are fairly presented and free from material misstatement.

External auditors are typically hired by companies of all sizes, but they are most commonly found in larger companies. This is because larger companies are more likely to be required to have their financial statements audited by an independent auditor.

External auditors are required to follow certain standards when conducting their audits. These standards are set by the Public Company Accounting Oversight Board (PCAOB). The PCAOB is a non-profit organization that was created by the Sarbanes-Oxley Act of 2002.

External auditors play an important role in the financial reporting process. They help to ensure that financial statements are accurate and reliable. This information is used by investors, creditors, and other stakeholders to make informed decisions about the company.