External auditors closely examine the adjustment process of a company because adjustments are the most complex part of the accounting process and therefore the most error prone.

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External auditors need to ensure that adjustments are recorded accurately and in accordance with generally accepted accounting principles (GAAP) to ensure the financial statements are fairly presented. Errors in the adjustment process can result in material misstatements in the financial statements.

External Auditors Closely Examine the Adjustment Process of a Company