1.   An external auditor is brought in to examine the accounts.

2.   And, in practice, the external auditor will take account of this in carrying out the statutory audit.

3.   For this reason a change of name is proposed from external auditors to external assessors.

4.   However, because the ultimate responsibility is given to the external auditor, the role of the internal auditor is not emphasized.

5.   The proposals also aim to overcome the present problems relating to the independence, accountability and legal liability of external auditors.

6.   In the case of a company, external auditors are appointed by the members.

7.   An external auditor will need to carry out detailed checking of records and procedures.

8.   An external auditor must decide the scope of the work to be undertaken to discharge his or her duties.

9.   In this connection an external auditor will wish to consider what reliance should be placed on an internal audit.

10.   In large organizations it has become common practice for audit committees, consisting of representatives of senior management, the internal audit department and external auditors, to meet.