Final answer:
External auditors use generally accepted auditing standards (GAAS) to evaluate published financial statements, making the statement true. GAAS provide a framework for auditors to ensure consistency and reliability in auditing practices.
Step-by-step explanation:
The criteria used by an external auditor to evaluate published financial statements are referred to as generally accepted auditing standards (GAAS), not generally accepted accounting standards. Therefore, the statement in question is True. These standards guide auditors on the various aspects of their audit process including planning, execution, and reporting. The standards set the minimum requirements for an audit and help ensure the consistency, accuracy, and verifiability of auditors' actions and reports. An external auditor's role is to provide an independent opinion on the truth and fairness of financial statements which can be relied on by various stakeholders including investors, creditors, and the public.