What term describes the examination of financial documents by a designated external auditor?

The term that describes the examination of financial documents by a designated external auditor is the Annual Audit. An annual audit is a systematic review of an organization’s financial statements, conducted by an independent auditor to provide assurance that the financial statements are accurate, complete, and in accordance with applicable accounting standards. This process is essential for maintaining transparency and accountability within the financial operations of condominiums and other organizations.

The Annual Audit utilizes standardized procedures and includes assessing the risks of misstatement, evaluating internal controls, and confirming financial information with external sources. This instills confidence among stakeholders, including unit owners, potential investors, and regulatory bodies, by ensuring that the financial health of the condominium is accurately represented.

While other terms like Financial Review, Compliance Audit, and External Review may involve aspects of examining financial information, they do not specifically refer to the formal, thorough auditing process that is performed annually by a qualified external auditor as mandated by regulatory practices.