The process of performing an external audit (C3)

The process of performing an external audit must involve as many managers and employees as possible. A company must first gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.  Individuals should be asked to monitor various sources of information, such as key magazines, journals, and newspapers.  These persons can submit periodic scanning reports to a committee of managers charged with performing the external audit. Once the information is gathered, it should be assimilated and evaluated.  A meeting or series of meetings is needed to collectively identify the most important opportunities and threats facing the firm.  Factors should be ranked and prioritized.  A final list of the most important key external factors should be communicated and distributed in the organization. Both opportunities and threats can be key external factors