The Importance of External Auditing

31 May 2023, Basseterre, Saint Christopher (St Kitts) and Nevis – An external
audit is an independent review of a company’s financial statements that provides
transparency and evokes confidence in shareholders that the company is being run in their
best interest.

Speaking on this week’s episode of ECCB Connects, Head of Audit Quality at BDO
Eastern Caribbean Saint Lucia office, Andrea St Rose, says that an external auditor
operating within the ECCU region must possess certain qualifications before engaging in
the auditing process. The auditor must be licensed by the Institute of Chartered
Accountants of the Eastern Caribbean region and must adhere to the International
Standards on Auditing and Quality Management for the conducting of the audit.

St Rose outlines the process of preparing for and conducting an audit which involves the
planning of an engagement with the management and governing body of the company as
well as an understanding of the internal controls that are in place. She further notes the
importance of the company establishing a timeline with the auditors of the various activities
regarding the process. She highlights the fact that any significant changes in the business
during the audit period should be brought to the immediate attention of the external
auditor.

St Rose re-emphasises that planning and constant communication were important factors
in the conduct of any audit to ensure success for all the stakeholders involved. In addition
to this, she says that compliance with financial regulations is the main benefit of auditing to
a firm; and the main benefit to a customer is that level of comfort provided for their
investment in a safe and healthy company.

View the full discussion on the ECCB’s social media platforms, Facebook and YouTube,
using the handle ECCB Connects.

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