An audit is a common term in a company’s or organization’s financial segments. An audit firm’s goal is to verify an organization’s financial documents so that there are no mistakes in the finance department. An audit firm ensures that the taxes and bills claimed by businesses are correct and verifiable. Auditors participate in the auditing process and can be either internal or external auditors.
Internal auditors work for an organisation and conduct audits for the organisation in which they work. External auditors, on the other hand, serve other organisations on an invitation basis during auditing. Any Certified Public Accountant (CPA) firm will have external auditors.
Auditing in Dubai:
External Auditing occurs at various expanses within Dubai and leading chartered accountants to carry out such processes. Therefore, the audit firms that each establishment chooses must be the best among the CPA firms to ensure efficient functioning. CPA agents have the power and authority to carry out these audits. Additionally, they can also sign reports that require accredited validation throughout the UAE.
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The Procedure of an Audit:
- The higher levels of management within an organization enforce, ask for and conduct audits. Doing so helps them maintain a transparent financial record and ensure no underlying flaws are present in their financial department.
- When an organization decides to have an audit, either the internal auditor will be doing it or an external audit firm is requested to conduct the audit. Afterwards, the organization decides on a date to conduct the audit, along with the audit firm involved.
- The process may take a few days to complete as it depends on the organization. Generally, the expanse of the process can vary from 30 to 90 days including the strategy formation to the conclusive meetings.
During the process of audit, the organization must keep all their financial documents ready, including all their invoices, receipts, and expenditure records.
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Audit Firm Laws:
- The recalculation required after comparing the recorded statements helps in finding probable incongruities and miscarriages of records. All these are necessary to correct the financial loop-holes that may consume the company’s wealth needlessly. After spotting them, it becomes easier to correct and refrain from such mistakes in the future.
- The law of UAE commercial companies asks organizations to maintain a financial record of at least 5 years.
- The audit of organizations in the mainland is obligatory. This law is variable depending on the jurisdiction and the guidelines required by the appropriate legal authorities.
- It is not necessary for the free zone establishments within the geographical expanse of Dubai to produce documented reports of the audit. However, they must conduct regular audits and get the reports authorized from recognized CPA firms in Dubai.
- The auditors may request the approved plans of the establishment or knowledge of the company policies and the current undertakings.
- Based on the financial records the auditors may conduct an interview with the employees to make a review of the conducted record research. After completing an audit, the auditor files an appropriate audit report for evaluation.
- After filing the audit report, the firm calls for a meeting with the management of the company. They then discuss the flaws in the financial documents and brainstorm to find the right solution for it.
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Audit Report:
- An Audit report is an important document that the financial department requires for various things in the future.
- The audit report is integral to the financial representation of a company as investors use it as a tool and they come to a conclusion if they have to invest or not.
- Therefore, it is important that companies maintain a proper report as it can help maintain the financial stability of a company avoiding future discrepancies.
- With the help of an audit report, fraudulent activities within the establishment can be identified and eliminated.
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External Audit Importance:
The major purpose of the external audits to avoid frauds. The auditors in the CPA firms across Dubai make sure that the reports are prepared according to the International Financial Reporting Standards and thus act as a validity certificate to the reports held by the enterprise.
The external audits are important to gain the confidence of all the stakeholders, the public, and the government ensuring the promptness of the financial records of the enterprise.
All the investors look for companies with reliable financial records and such accreditation is received by existing establishments by the audit reports and auditing processes they undergo.
Further to this the standards of internal audits and record-keeping tremendously improve and thus the financial reliability of the company upsurges.
The auditing firms make sure that the legal guidelines are met and help to avoid any possible legal scuffles, thus maintains the reputation of the company.
Regular audits increase the integrity of the company and thus lures investors to invest with complete confidence and with solid audit reports the company can improve all their financial flaws. In the long run, the company gains monetary permanence and prevents siphoning of funds, embezzlements, and fraud within the company.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
Why KGRN Audit Firm
KGRN auditing firms provide the companies with a proficient external audit and an ethical and professional service. The firms are one of the best CPA firms in Dubai with a credible workforce of auditors.
The sole purpose of the auditors is to ensure the client’s company to have financial expansion and firmness. The auditors ensure that the establishment follows all the guidelines issued by the jurisdictional authorities. They then go ahead to prepare reports meeting the requirements of the International Financial Reporting Standards.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
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