Your Ask Joey ™ Answer

Who selects the external auditor?

The external auditor (not the internal auditor) is normally selected by the audit committee for public companies and those charged with governance for nonpublic companies. The external auditor is an audit firm that is a 3rd party, such as PwC, Deloitte, E&Y, KPMG, etc.

Those Charged with Governance:

Those Charged with Governance will also be known as the Board of Directors or company audit committees, and will include people, or corporate trustees that contain responsibility for overseeing all strategic decisions of a company’s financial reporting systems.

Back To All Questions

You might also be interested in...

  • CECL Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on CECL for debt securities, please click the link below to download the Excel workbook: CECL Calculation workbook (Universal CPA Review)

  • Journal Entry for Direct Materials Variance

    Journal Entry for Direct Materials Variance In the current year, Mission Burrito budgeted 6,000 pounds of production and actually used 4,000 pounds. Material cost was budgeted for $5 per pound and the actual cost was $8 per pound. What would the debit or credit to the direct material efficiency variance account be for the current...

  • Understanding Variance Analysis

    Variance Analysis Variance analysis is a method for companies to compare its actual performance vs its budgeted amount for that cost measurement (related to the flexible budget). The differences between the standard (budgeted) amount of cost and the actual amount that the organization incurs is referred to as a variance. By analyzing variances, the company...