https://padlet.com/joannep8/rsqdo0ea31b3272g en-us 2023-10-12 02:24:55 UTC 2023-10-13 02:12:58 UTC hello@padlet.com joannep8 https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2742815021 2023-10-12 02:32:26 UTC https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2742815021 https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2744405881 An external auditor is an independent accountant that checks and verifies financial statements of the company. Their role is to ensure financial statements provide a true and fair view of the financial position and performance of the company, so that external users of financial statements can make informed financial decisions relating to the company. For example, potential investors can make a decision on whether to invest in the company based on their profit for the year in the Statement of Comprehensive Income. Another function of an external auditor is to provide confidence in Australian Capital Markets. As an external audit ensures a true and fair view of the company’s financial position and performance, investors would be more confident in their investment in Australian companies, thus leading to increased inflow of cash to Australian companies and reducing the cost of capital.]]> 2023-10-13 01:00:53 UTC https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2744405881 https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2744408828 External audit refers to an external and independent individual or entity that would check and verify financial documents of a company to protect external shareholders in order to ensure those documents are a true and fair representation of the company’s financial position. An external audit is mandatory for reporting entities such as large proprietary companies and public companies that are registered with ASIC and often occur once annually. An external auditor is appointed during the director’s annual general meeting whereby the directors will vote to appoint an external author and in order to ensure no biases, companies will follow the 5/7 rule whereby an external auditor that is appointed for 5 years straight will need a break of 2 years before being appointed as a company’s external auditor again. These external auditors would audit documents that would be shared with external stakeholders that are the financial statements such as the statement of financial position, statement of cash flow and statement of comprehensive income. ]]> 2023-10-13 01:03:24 UTC https://padlet.com/joannep8/rsqdo0ea31b3272g/wish/2744408828