When should external auditors express an opinion on financial statements?

External auditors typically express an opinion on financial statements regularly at every reporting period, as this is a fundamental part of their role in providing assurance to stakeholders about the accuracy and reliability of a company's financial reporting. Auditors examine the financial statements, assess whether they are prepared in accordance with the applicable financial reporting framework, and evaluate whether they present a true and fair view of the company’s financial position and performance.

The requirement for regular audits aligns with the needs of investors, creditors, and other stakeholders who rely on timely and accurate information to make informed decisions. Annual audits are common, but some entities may require more frequent reviews or audits depending on regulatory requirements, financial complexity, or other factors.

This option emphasizes the ongoing nature of auditing in maintaining trust in financial reporting. Choices that suggest expressing an opinion only under specific circumstances, such as when fraud is suspected or infrequently as in rare occasions, do not reflect the structured and routine nature of financial audits in most organizations. Additionally, stating that auditors should only express an opinion once a year can overlook the necessity for interim reviews that many organizations may require.