What is the primary benefit of conducting an external audit?

The primary benefit of conducting an external audit is that it may be more objective than internal audits. External auditors are independent professionals who are not affiliated with the organization being audited, which helps to ensure an unbiased assessment. This independence is crucial in providing stakeholders, such as investors, creditors, and regulatory bodies, with confidence in the accuracy and fairness of the organization's financial statements and operations. The objectivity offered by external auditors can enhance the credibility of the findings and promotes transparency and accountability within the organization.

In contrast to internal audits, which are performed by employees of the organization and may reflect internal biases, external audits deliver an impartial view that is based on established auditing standards and practices. This is particularly important for external stakeholders who rely on the audit results to make informed decisions.