Definition
An External Audit is an Audit conducted by an independent organisation or authorised body to evaluate conformity with specified requirements, standards or legal rules.
Human Explanation
It provides an independent assessment of how an organisation operates and may confirm that specified requirements are met.
Why it Matters
Independent assessment increases credibility with customers, business partners, regulators and certification bodies.
Conceptual Boundary
An External Audit does not replace Internal Audit. The two serve different purposes and complement one another.
Practical Perspective
An organisation that conducts effective Internal Audits regularly is usually better prepared for External Audits and certification processes.