Who performs external audits of financial statements?

• A. Certified Public Accountant (CPA)
• B. Internal auditor
• C. Tax advisor
• D. Consultant

Answer: (A)

External audits of financial statements are done by independent professionals who can attest to the accuracy and fairness of the statements. In practice, this is a Certified Public Accountant or an accounting firm that remains independent of the entity being audited. They follow established auditing standards and issue an opinion on whether the financial statements present a true and fair view of the company’s financial position and results. Internal auditors are employees of the company and focus on evaluating internal controls and processes, not providing an external opinion. Tax advisors handle tax matters, while consultants offer advisory services; neither typically performs the formal external audit of financial statements.