509CONTEMPORARY MANAGEMENT PRINCIPLESCHAPTER 21Principles of controlFinancial auditsFinancial auditsare independent appraisals of an organisation’s accounting, financial and operational systems. There are two major types of financial audit, namely the external and the internal audit. External audits are financial appraisals conducted by experts who are not employees of the organisation. External audits are typically concerned with determining that the organisation’s accounting procedures and financial statements are compiled in an objective and verifiable manner. An internal audit is handled by employees of the organisation. Its objective is the same as that of an external audit – to verify the accuracy of financial and accounting procedures used by the organisation. Furthermore, internal audits examine the efficiency and appropriateness of financial and accounting procedures.