Which type of accounting system includes developing the income statement, balance sheet, and statement of cash flows for external users?

Managerial accounting is designed for internal users, such as management and executives, to aid in decision-making and performance evaluation. It involves detailed reports and analyses that are not shared with external parties. While it contributes to financial planning, it does not focus on the formal financial statements required for external reporting.

Tax accounting pertains specifically to the preparation of tax returns and tax-related matters. It is governed by tax laws and regulations rather than the general financial reporting standards applicable to external users. While it may utilize financial data, its primary aim is to ensure compliance with tax obligations, not to produce financial statements.

Auditing involves the examination and verification of financial statements prepared by others, typically to ensure accuracy and compliance with accounting standards. While auditors analyze financial statements for external users, they do not create the financial statements themselves; rather, they provide assurance on the validity of those statements.