Which of the following is the best advantage of external audits?

The primary advantage of external audits is independence. External auditors are independent third parties who are not involved in the day-to-day operations or management of the organization they are auditing. This independence ensures that the audit findings are objective and unbiased, allowing stakeholders to trust the results and conclusions drawn from the audit.

When an external audit is conducted, there is a clear separation of interests, meaning that the auditors can evaluate the organization's processes and controls without any conflict of interest. This objectivity enhances the credibility of the audit, which is vital for regulatory compliance, organizational transparency, and maintaining stakeholder confidence.

In contrast, while oversight, cost, and results might also be considerations within the context of audits, they do not share the same level of significance as the impartiality afforded by an external audit. Oversight may relate to monitoring processes internally; however, it does not inherently guarantee independence. Cost considerations can vary widely, and while sometimes external audits might be more economical, their primary value lies in the confidence and reliability provided to stakeholders. Lastly, while external audits could lead to better results in terms of organizational improvements, their defining characteristic remains their independent assessment capability.