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Governance, Risk, Audit & Privacy · Foundational

External Audit

Audit performed by an independent party outside the organization, such as a CPA firm or certification body.

Definition

External audits provide independent opinions for stakeholders such as investors, regulators, or customers. Examples include financial statement audits, SOC examinations, PCI DSS assessments by QSAs, and ISO certification audits. External auditors may rely on internal audit work after evaluating it.

Example

A CPA firm audits the company's internal control over financial reporting under SOX 404(b).

Exam tip

External auditors are third-party; regulators may require them.

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