Independent auditing: essential tool for evaluating financial statements, increasing transparency in financial statements, and strengthening corporate governance, providing security to investors and reliable information for business decisions.
When the objective is to collect and organize a company's financial information, independent auditing is one of the most efficient tools. By definition, the independent auditing is the process of analyzing and validating the financial statements and financial and asset information of a business by an external and exempt team. Normally hiring involves a respected and market-based external auditing, which applies auditing procedures to form a qualified opinion on the statements and on the reliability of the information presented.
How the independent auditor's job works
The independent auditor plans the auditing activity by identifying relevant risks, obtains and evaluates evidence about accounts and transactions, and tests asset controls and balances. At the end, it issues a report with the auditor's opinion, which may be without reservations, with reservations, adverse, or with abstention. This opinion impacts the decision-making of management, board, and market agents.
To carry out the audit, independent auditors will need access to financial statements, ledgers, balance sheets, relevant contracts, asset evidence, and tax and labor information. Typical procedures include external confirmation of balances, physical inspection of assets, testing of transactions, and review of accounting policies to verify compliance with accounting standards and guidelines from the Federal Accounting Council.
Practical benefits for the company and for the market
In addition to increasing the transparency and reliability of the statements, independent auditing helps identify errors and weaknesses in internal control, reduces risks, and advises management on priority corrections. The auditor's opinion improves corporate governance because it provides independent information that supports strategic decisions, fundraising, and relations with shareholders and investors.
Practical examples include verifying inventories to detect measurement errors, analyzing provisions and contingencies to assess risks, and reviewing asset measurement policies to ensure compliance with accounting standards. These procedures reinforce the financial information base used by managers and market agents.
Receiving an auditing report recognized in the market increases the company's credibility with investors and facilitates investment decisions, financing, and business partnerships. To learn more about the specific benefits of hiring, read at Benefits of hiring an independent auditor And about the effectiveness of auditing work in The effectiveness of independent auditing.
If your company is growing, independent auditing is also essential to structure controls, demonstrate compliance with accounting standards, and support market expansion. Also read Independent Audit: Why is it essential for growing companies? to learn about practical recommendations.
In short, independent auditing increases information transparency, improves corporate governance, and provides an impartial report that guides management in correcting flaws and reducing risks, resulting in greater market confidence and better decisions for the company.
Learn more about independent auditing, by clicking here.
How to hire an independent auditor?
To hire an efficient independent auditor, follow clear steps: initial diagnosis to map risks and scope, detailed technical proposal, execution of auditing procedures and delivery of the report with the auditor's opinion and recommendations for improvement. This flow helps ensure compliance with accounting regulations and the protection of company assets.
The professionals at TATICCA Allinial Global have more than 25 years of proven experience in auditing services, serving companies from different sectors of the market. Our independent auditors follow practices recognized by the Federal Accounting Council and apply procedures aimed at reducing risks, increasing the reliability of statements, and strengthening internal control.
If you want an initial assessment, request a technical proposal or talk to our team to understand estimated deadlines and costs. Contact us by calling (11) 3062-3000 or by e-mail taticca@taticca.com.br. We can provide case studies, sector references, and guidance on how auditing can support strategic decisions and accountability to regulatory bodies.
