Who typically conducts external audits?

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External audits involve an independent third party examining a company’s financial statements to determine whether they fairly present the financial position and operations in line with governing accounting standards. The standard practitioners are Certified Public Accountants or audit firms because they are licensed, follow formal auditing standards, and maintain the necessary independence to provide an objective opinion. This independence from the company being audited is essential for credibility and trust in the audit results. Internal staff perform internal audits, which serve internal governance rather than external assurance, while volunteers or journalists do not provide the formal, standards-based attestations required in typical financial reporting.