What is the role of an external audit function?

The role of an external audit function is primarily to determine the accuracy of the financial statements. External auditors provide an independent assessment of an organization's financial reports, ensuring that they present a true and fair view of the financial position and performance in accordance with applicable accounting standards. This process involves reviewing the organization's accounting practices, internal controls, and financial reporting processes to identify any discrepancies or areas of concern.

By conducting this evaluation, external auditors enhance the credibility of financial statements, which is crucial for stakeholders such as investors, creditors, and regulators who rely on this information for decision-making. The process helps in building trust and confidence in the financial reporting of the organization, as it is performed by professionals who are not part of the organization and have no vested interests.

Other roles, such as preparing financial documents, enforcing legal standards, or investigating internal conduct, do not align with the primary objective of the external audit. While these activities may be essential to an organization's overall governance and compliance framework, they fall outside the scope of what external auditors are tasked with during their audit engagements.