An external auditor is an independent accounting firm hired to examine an organization's financial statements and provide an opinion on whether they fairly represent the financial position and follow proper accounting standards. Provincial legislation requires municipalities to have annual external audits, ensuring public accountability for taxpayer money. External auditors are independent—they have no financial stake in the municipality and aren't involved in preparing the statements they audit. The audit process involves testing transactions, verifying balances, evaluating internal controls, and assessing accounting policies. Auditors issue opinions: unqualified (clean) opinions confirm statements are fairly presented, while qualified opinions note specific concerns or limitations. External audits complement internal audits (ongoing reviews by staff) and provide assurance to council, residents, and other stakeholders that financial reporting is reliable. Audit reports are public documents typically presented at council meetings.