Independent auditing is a process that aims to assess the veracity and reliability of a company's financial and accounting information.

But do all companies need to go through this process?

The answer is no. According to Brazilian legislation, only publicly traded companies with shares traded on the stock exchange are obliged to undergo independent audits. This is due to the need to provide transparent and accurate information to investors and the market in general.

However, this does not mean that privately-held companies or even non-profit organisations should not undergo independent audits. Although they are not required by law, independent audits can bring several benefits, such as:

Credibility: Independent auditing can increase the company's trust with its stakeholders, such as investors, suppliers, customers and even society in general. Finally, the verification of financial information by an external, independent company demonstrates transparency and reliability.

Identifying fraud and errors: Independent auditing can also help identify fraud and accounting errors that could jeopardise the company's finances. These irregularities can be corrected before they cause large payouts.

Improved management: The independent auditing process can also provide valuable information for company management, enabling more accurate analysis of finances and the development of more effective strategies.

Compliance with investor requirements: Even if the company is not publicly traded, it may have investors or potential investors who require an independent audit.

Conclusion:

Although independent auditing is only mandatory for publicly traded companies, it is important to emphasise that all companies can benefit from the process. As well as bringing greater security and transparency to the company's financial and accounting information, independent auditing can also identify fraud and errors, improve management and meet the demands of investors.

Therefore, even if it's not a legal obligation, independent auditing can be a valuable tool for the management of any company, allowing for a more accurate analysis of finances and the development of more effective strategies. After all, transparency and reliability in financial information is essential for the trust and success of any organisation.

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