To perform an external audit, a company first must:

Performing an external audit requires gathering relevant data to understand the external environment in which a company operates. This information is critical to identify opportunities and threats that may impact the organization's strategic decisions. By gathering competitive intelligence and analyzing external trends—such as market dynamics, economic indicators, regulatory changes, and technological advancements—the company can develop a clearer picture of the landscape in which it competes.

This foundational step helps in assessing the strategic position of the company relative to its competitors and understanding the broader economic and social factors influencing the industry. Consequently, the insights gained from this external audit inform strategic planning and decision-making processes, positioning the company to leverage strengths and address weaknesses effectively in the face of external challenges.