External audits are conducted by independent firms to evaluate a company's financial statements, ensuring compliance with accounting standards and providing a true representation of financial performance. The auditing process involves planning, risk assessment, evidence gathering, and reporting findings and recommendations. Various levels of assurance exist in audit engagements, from comprehensive audits to lower assurance reviews and compilations, depending on the specific needs of the organization.

1. External Audit
External audits are typically carried out by an independent third-party auditing
firm, distinct from the company's internal audit function. Here’s an overview of the
main aspects of external audit service of Herald.
An audit is merely the examination and commenting on the objects confirmed. A
financial audit entails a review of the books of accounts as well as other pertinent
data. This will provide the auditor with the information he needs to determine
whether the accounts have been properly managed and whether they have met
the relevant statutory, accounting, or financial reporting, and auditing standards.
A financial statement audit is an independent examination of the organization’s
financial statements. The primary goal of a financial statement audit is to provide
independent or third-party assurance that management has presented a “true
and fair” assessment of a company’s financial performance in its financial
statements.
The auditor’s report attesting to the fairness of the financial statements and
related disclosures is the result of this examination. When the financial
statements are distributed to the intended receivers or stakeholders, the auditor’s
report must be included.
The significance of auditing accounting books and records
Auditing accounting books and records is a critical activity that ensures the
correctness and integrity of financial information for a variety of reasons. Here
are some of the primary reasons why auditing is important.
● Detection of errors and fraud
● Compliance with accounting standards and regulations
● Improved financial management
● Enhanced credibility
● Facilitating decision-making
The External Audit Procedures

2. External audit processes are the actions and techniques an impartial external
auditor use to assess a company’s or organization’s financial statements and
other financial data. External audit processes resemble an inquiry into finances.
● Plan their strategy and evaluate the risks
● Gather proof to back up their testing methods
● Examine financial information for any potential mistakes or omissions.
● Verify the information with other sources, such as consumers or banks.
● Make a general evaluation of the financial accounts.
● Report on their conclusions and recommendations
The various levels of guarantees from the perspective of the
auditors
A complete audit offers a high degree of assurance. However, compared to an
audit, a review engagement provides a somewhat lower level of confidence. The
auditor does not do all of the steps that are performed during an audit, much like
in a review. In addition to the yearly audit, publicly owned companies are required
to have their quarterly financial statements scrutinized .
Sometimes, the need is to certify merely a single piece of financial information,
such as the company’s annual revenue, or to report on a set of financial
statements. Similar to a review engagement, the level of certainty in such
agreed-upon procedures is lower .
In the event of a compilation engagement, the auditor is relied upon to create the
financial statements, where his competence in gathering, categorizing, and
summarizing financial information is simply required and not intended to provide
assurance on the financial statements.