What should an auditor do if evidence contradicts management assertions?

When evidence contradicts management assertions, the auditor's responsibility is to carefully analyze the evidence and potentially adjust their audit conclusions. This approach ensures that the auditor maintains objectivity and professionalism in the audit process.

The integrity of the audit is at stake when discrepancies arise between the evidence collected and what management claims. Analyzing the evidence allows the auditor to assess the reliability of the information and the assertions being made by management. This critical evaluation can lead to a more accurate understanding of the financial situation and operations of the entity being audited, which may ultimately impact the auditor’s opinion.

Furthermore, adjusting audit conclusions based on contradictory evidence aligns with the principles of due diligence and thoroughness, which are foundational to the auditing profession. It underscores the auditor's role in providing an unbiased assessment based on facts, rather than taking management's statements at face value, which could potentially mislead stakeholders.

Therefore, thorough analysis of the evidence forms the basis of forming a valid and well-supported audit conclusion. This key step contributes to the overall credibility and reliability of the audit findings.