1. Wahid’s Clarification – The objective of external audit
Summary: The objectives of External auditor have two main responsibilities. (I) it External
auditor audits the annual accounts (II) External auditor considers issues raised by local
population and, if necessary, takes action. The external audit and internal audit of the
obtainable variations there are dealings, both have different features, they complement each
other, so that the external audit and internal audit of the co-ordination is not only necessary
but also feasible
External audit, counting general audit and general Audit is executing by the general audit
office audit. As well as prefectures, metropolis and autonomous regions and counties set up
an auditing body being audited financial actions of the financial division, the accomplishment
of financial and economic law as well as cost-effectiveness of audit omission. Social audit is
the examination and approval by the relevant rule departments through social intermediary
agencies of the audit, its subject is the Certified Public Accountant (CPA)
external audit activities in the expansion of audit plans should obtain into account the work of
both elevations to reduce rhythmic employment; to converse the audit effective credentials,
external audit if necessary, inside the structure of switch of applicable operational documents
in order to assessment the workload after the mutual evaluation,
Introduction: The auditor is responsible for law subject to auditing standards generally
accepted financial statements of the company. Also assessment and methodically evaluate the
apparatus and elements that make up the internal control, timely and independent in the
manner prearranged by law. The auditor must demeanor an inclusive audit and must set out a
self-regulating professional opinion of the evaluation and supervision of control
classifications. It is a legal requirement that the Council must have an external auditor. All
local authorities have an external auditor appointed by the Audit Commission. More or less
75% of local authorities are audited by the Audit Commission’s provider support. The other
25% are audited by private firms. An external audit process determines the accuracy of
financial account statements in a profit-based organization. An external audit objective is to
determine, among other things, whether (1) the accounting records are accurate and complete,
(2) prepared in accordance with the provisions of GAAP, and (3) the statements prepared
from the accounts present fairly the organization's financial position, and the results of its
financial operations. The following accessible aspects or conditions of the external auditor
objectivities on the work
01. The audit object, the state audit to all levels of government, public institutions and large-
scale backbone endeavors of fiscal and financial revenue and expenditure and financial
process of the main; social audit objects comprise all profits and for-profit components,
02. Financial, operational, compliance and information methods audits are the most accepted
types of external audits businesses use. Securities and Exchange Commission regulations
necessitate banks with total assets of $1000 million or more to preserve an inclusive external
audit program, even if the same is sensible for all foremost and publicly owned financial
institutions. A designed external auditing method should support an organizations internal
audit plan.
03. The objective of maintaining an efficient external audit plan is to provide top management
the dependability of internal gearshift over financial reporting and to guarantee them of the
accurateness and correctness of business proceedings and financial and regulatory reports. It
also affords an unbiased and objective standpoint of the organization's practical methods. This

2. information is invaluable for the board of directors for managing the institution risk-
management policies.
04. The function of external corroboration can not manage to pay for not to the outside world
to the public; national audit, excluding those involving trade secrets or other suitable public,
the audit results must be of external publicity; social audit reports are open to the outside
world, for investors, creditors and the community accountable to the public, the role of social
classification.
05. A financial statement audit connects a monarch audit of the financial statements in
agreement with GAAP (generally accepted accounting principles) and GAAS (generally
accepted auditing standards) by an IPA (Independent Public Accountant) or a CPA (Certified
Public Accountant).
06. A bank's internal arrangement that gearshift financial reporting analyzes and documents
the management's claims of the usefulness of internal controls over financial reporting. It may
include different internal controls regarding annual financial statement preparation and exact
schedules of call. The IPA will confirm the report according to GASAE (generally accepted
standards for attestation engagements).
07. A balance sheet audit engages the analysis of just the balance sheet. It keeps out
assessment of statements of income, changes in equity capital, and cash-flow issues. The
audits are done in harmony to the GAAS.
08. The scope and requirements of the external audit, and the audit values to be assumed.
Once that is developed, establish the powers essential in the auditor and the assessment
process. Lastly, note any legal issues, agreement periods, auditor revolution options and work
schedules.
09. The scenery of the audit, external audits is demeanor by a sovereign external body to
provide documents as a third party activities on state power departments or social and public
answerability.
10. In the nature of auditing, the general Audit is a managerial oversight, compulsory; social
audit of social direction, the state can only identify which companies must verify auditing
accounts by social audit organizations and businesses and social audit of the audit
organizations are a two-way relationship between the voluntary choices; the internal audit
unit to monitor them.
Conclusion: Internal audit and external audit coordination is based on: internal audit and
external audit of the content, scope, standards, basis, procedures, and methods, there are many
parallels similar. External audit of internal audit can be used to provide relevant information
to improve audit efficiency, can be entrusted to assist in the completion of internal audit of
social auditing tasks, and even with the strength and credibility of the good social audit
institutions formed a strategic alliance to further increase the interior of their flats The audit
supervision; external audit be able to understand the situation of internal audit, internal audit
work to get the cooperation and support of internal audit results can also be used to improve
Audit efficiency,