External Audit for UK Business

What is an External Audit?

An external audit is an independent review of a company’s financial records and operations to ensure they are accurate and compliant with relevant laws and regulations. It is carried out by an external auditor, who works independently of the organisation being audited.

In the UK, external audits are a key part of good corporate governance, helping businesses remain compliant with statutory requirements such as the Companies Act 2006. They provide assurance to stakeholders, identify potential issues before they escalate, and confirm that a company’s financial statements present a true and fair view of its performance.

External auditors are responsible for:

1. Meeting with the company’s management and finance team to gather relevant information
2. Developing an appropriate audit plan and strategy
3. Designing and implementing audit procedures
4. Identifying potential financial and operational risks
5. Analysing the company’s financial statements
6. Preparing the final audit report
7. Presenting the audit findings to management or shareholders and discussing recommendations