The external audit entails collecting, assessing, and interpreting data by personnel peripheral to the organization being examined to gain a sufficient understanding of its activities. An external audit helps in improving the internal systems of an institution. For instance, conducting external auditing in the aviation industry helps find discrepancies that, when corrected, result in operation enhancement. Auditing management is responsible for mitigating the identified risks (Price & Forrest, 2016, p.105). Regarding flight operations, an external audit helps to collect FOQA data via aircraft data recorders, which is used to identify any possible risks and initiate corrective plans. External audit boosts the credibility of operations such as financial tasks within an institution and yields shareholders' confidence to continue providing the necessary assistance. Finally, an external audit helps identify an organization's safety culture (Price & Forrest, 2016, p.124). The findings achieved by the auditors are used to improve the gaps that are detected within the institutions.
The external audit's major disadvantage is that the whole operation is expensive as the auditors require to be paid. External examines contributors might be secluded from the institution's informal networks, which may put them at a weakness when navigating the surroundings. During the process, discretion may be violated when external auditors are unfaithful with the rank information. The reporting obtained from external auditing may be inaccurate, primarily when rarely conducted. For instance, in the aviation industry, airport reporters hardly test other components of their AEP, which include structural fire response and fuel farm fire (Price & Forrest, 2016, p.106). An external audit is prone to problems in remedial measures and unsuitable changes in operations from this perspective.
Delegate your assignment to our experts and they will do the rest.
Reference
Price, J., & Forrest, J. (2016). Practical airport operations, safety, and emergency management: Protocols for today and the future . Butterworth-Heinemann.
