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Accounting DB

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External auditing is a periodic audit that is conducted by the qualified and independent external accountants. It is always aimed at determining whether the company’s accounting records are complete and accurate. It also determines whether the accounting records are prepared according to the set provisions and check whether they fairly represent the company/organization’s exact financial position alongside the outcomes of the financial operations (Saint Helena Audit Service).

The Coca-cola company is among the ones that are always externally audited whereby the External Factor Evaluation Matrix method was used (Fasihu I). The company was audited by the S&P Industry survey whereby the auditors found out that the consumers of the coca cola products are drawn to the new smaller brands that are not sold on large scale. There report also indicated that the sales of energy drinks were expected to increase by about seven percent in the year 2007. It also implied that many consumers were striving towards drinking and eating their ways to better health than previous generations. This external audit report enabled the shareholders of the Coca-cola Company to understand the position of the company hence they were able to come up with their future projections (University of Jordan).

It is a wise investment to contract the external services that are able to provide security against fraud. For instance, organizations should seek the services of the external auditors because they are required by various regulatory agencies and stake holder who sometimes doubts the accuracy of the financial claims of the organizations. Also, the external auditor positions are always held by certified public accountants that are professionally qualified to carry out the audit activities. These people have vast experience in auditing, business administration and financial analysis (WiseGEEK).

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