External audit (statutory audit)

Roles that need it

• External Audit Associate
• External Audit (Financial Services)
• General Accountant
• Group Reporting Accountant
• Company Secretary / Corporate Secretarial Associate

Skills it belongs to

• Audit methodology
• International accounting standards (IFRS)

Related concepts

• Audit opinionThe audit opinion is the auditor's conclusion on whether financial statements give a true and fair view under the applicable framework. It can be unmodified (clean), qualified, adverse or a disclaimer. For public-interest entities the report also describes key audit matters.
• Materiality (audit and reporting)Information is material if omitting or misstating it could reasonably influence the decisions of users of the financial statements. Auditors set an overall materiality, often a percentage of profit before tax, revenue or equity, and a lower performance materiality for testing.
• Internal auditInternal audit is the independent function that gives the board assurance on governance, risk management and internal controls. In the three lines model it is the third line, reporting to the audit committee. Banking rules require it to be independent of the activities it audits.
• Statutory accounts (annual financial statements)Statutory accounts are the annual financial statements an entity must prepare and file under company law, under local GAAP or IFRS. In the EU, listed groups use IFRS for consolidated accounts under the IAS Regulation, and the Accounting Directive sets the content for local accounts.

Sources

• Directive 2006/43/EC on statutory audits, EUR-Lex (external site) accessed 31 Oct 2026
• Regulation (EU) No 537/2014 on statutory audit of public-interest entities, EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.