Virtual External Audits Challenges and Benefits

An external audit of the financial statements is the process by which organizations hire an independent third-party accounting or professional services firm to examine their financial records and produce audited financial statements. While external audits are traditionally conducted on-site, business closures over the past year as a result of the COVID-19 pandemic have meant that many finance processes, including the external audit of the financial statements, were conducted virtually over the past year. APQC’s virtual audit quick poll, conducted in the Spring of 2021, shows that virtual audits became increasingly prevalent over 2020. This article reviews the challenges and benefits of conducts an external audit of the financial statements virtually discovered in the quick poll and participant interviews.