BENEFITS OF EXTERNAL AUDIT

Although internal audits contribute to improve production processes and identify possible weak points within methods or procedures, they cannot totally replace audits performed by external auditors. Benefits of external audits are for example, that external auditors provide an objective opinion, as internal auditors are simply employees of the company. Also, firms experience immediate correction or improvement of process deficiency, the external auditors finds. External auditors focus primarily on whether the financials are misleading. The long-term benefits of external audits include assurance for the management board, that accounting processes are effective, as well as increased confidence by investors, regulators etc. So, even if it does not seem necessary to appoint external auditors, the facts mentioned above, speak for themselves and certainly achieve a balance of the cost-benefit factor.