The external audit process typically involves the following steps:
Planning: The auditor develops an audit plan based on the understanding of the business, its environment, and the risks involved. Fieldwork: This step involves gathering and evaluating evidence through physical inspections, observations, and interviews with staff. Testing: The auditor tests internal controls and the accuracy of financial records using various auditing techniques. Reporting: The auditor compiles the findings into an audit report, providing an opinion on the financial statements and any recommendations for improvement.