External audit: what evidence closes the discussion.

Introduction to External Auditing

External auditing is an essential process to guarantee the transparency and conformity of financial and operational information. This examination by independent auditors seeks to validate the data presented, ensuring that it is free of material distortions. Below, we will explore what evidence is capable of ending discussions during an external audit, providing clarity and confidence to those involved.

Importance of Evidence in External Auditing

Evidence forms the basis on which the auditor supports his conclusions. Without sufficient and appropriate evidence, the audit loses credibility and does not fulfill its role of authenticating the information analyzed. The quality, relevance and sufficiency of the evidence directly influences the auditor's opinion and the result of the work carried out.

Types of Evidence Used

In external auditing, there are various types of evidence that settle debates and assist in decision-making:

• Accounting and Financial Documentation: records, balance sheets, income statements and proof of transactions are fundamental to validating the data presented.
• External confirmations: obtaining confirmations from third parties, such as banks, clients and suppliers, strengthens the veracity of the information.
• Physical Inspection: direct verification of assets and tangible goods ensures their existence and condition.
• Analytical Procedures: comparative analyses and trend checks help to identify inconsistencies and possible errors.
• Observations and Interviews: conversations with collaborators and observation of processes make it possible to understand the environment and identify possible risks.

Criteria for Evaluating Evidence

Not all evidence carries the same weight. To end discussions, the evidence must be:

• Relevant: directly related to the audited item.
• Reliable: from independent and verifiable sources.
• Sufficient: the amount needed to support the conclusions.
• Timely: current and consistent with the period audited.

How Evidence Closes the Discussion

When the evidence collected is robust, the auditor can issue a report with a reasoned opinion, closing debates on the validity of the information. For example, direct bank confirmation eliminated doubts about account balances; physical inspection proved the existence of declared inventories. This solid basis reduces the risk of later questioning and increases the reliability of the statements.

Challenges in Collecting Evidence

Despite its importance, collecting evidence can present difficulties, such as restricted access to documents, resistance from third parties to providing information and the complexity of accounting records. Overcoming these obstacles requires strategic planning, clear communication and the application of appropriate techniques.

Conclusion

Evidence is the foundation that closes any discussion in external auditing. Only robust, relevant and reliable evidence can guarantee a transparent and trustworthy result. Professionals working in this field should always strive for excellence in obtaining this evidence, as it is decisive for the credibility of the audit and for making informed decisions.