External Audits: A Director’s Guide from Planning to Sign-off
External audits are an important source of independent assurance – but they do not relieve directors of responsibility for the financial report. This practical guide explains the external audit process from a director’s governance perspective, from auditor selection and planning through to year-end testing, written representations and the final audit opinion. It examines where boards and Audit Committees should engage, how to approach auditor independence and non-audit services, why uncorrected audit differences deserve attention, and the particular care required when legal professional privilege is involved. It also considers auditors’ statutory reporting obligations to ASIC, the growing use of AI in audit, sustainability assurance and forthcoming changes to Australian auditing standards. Above all, it explains why directors must continue to bring their own informed and enquiring judgement to financial reporting rather than treating external audit as a substitute for board oversight.
