What is the primary objective of an external audit?

The primary objective of an external audit is to provide assurance to stakeholders regarding the accuracy of financial statements. This involves an independent examination of financial records and related operations to ensure that they fairly present the entity's financial position in accordance with the relevant accounting standards. By conducting such audits, external auditors enhance the credibility of the financial statements, which is crucial for stakeholders, including investors, creditors, and regulators, who rely on this information for making informed decisions.

While supporting financial planning efforts, analyzing operational efficiency, and enhancing client relationships may be important in various contexts, they are not the main focus of an external audit. The core purpose of an external audit centers on validation and assurance, which ultimately strengthens trust in the financial reporting process.