The external audit is not an obligation established by the regulations. Therefore it is a voluntary decision of each company that must evaluate the needs and possibilities of this. It is important to highlight that it is, however, mandatory for public limited companies. There are a lot of reasons why such firms need an external audit:
- Grant information users reliability
The information is produced and presented to the public both internally and externally; customers, suppliers, workers, who will be responsible for making use of the data contained in these reports.
Therefore, the reports are supported by the certification of an external auditor, who guarantees that the information contained in the reports corresponds to the reality of the organization and is prepared and presented in accordance with the legal provisions to which it is subject the organization.
- Ensure the reasonableness of the information contained in the financial statements
The external auditor is responsible for certifying that the data contained in the financial statements have been recognized, recorded, and disclosed in accordance with the technical regulatory framework for the organization. Therefore, the company’s compliance with legal provisions can be ensured, which grants guarantees of legal compliance by the company.
- Increase the degree of reliability of shareholders and / or investors
When a company has external audit services, it provides a greater degree of security and reliability in its shareholders and investors; this is due to the assurance that a third party external to the interests and operation of the organization is responsible for carrying out information review work. Likewise, that in accordance with the fundamental principles that govern its work, said accounting professional acts under independence and objectivity, which generates suitability of the information and consequently is shown as a secure company to deposit funds that will produce the results that have been disclosed in the different reports.
One of the best auditing firms is Parker Russell International. It’s an international organization that holds a global network of audit, advisory, and tax firms. The group was founded in 2003 and is headquartered in London. Their mission is “to provide quality services to members and their clients, and enhance their professional relationships for the benefit of worldwide membership.”