“Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following a documented system of recording transactions. It is done to ascertain the accuracy of the financial statements provided by the organization.”
Major Purpose of an Audit:
Auditing is done by a separate legal firm. These auditing firms will have several auditors who will calculate the company’s financial transactions and give a detailed report. These reports will be used for reference in the future. Many major financial decisions will be taken based on these reports. The auditing will be done with the country’s legal references and these reports can be submitted to the court for references if required.
The major purpose of the audit is to create detailed information on the company’s financial report for a certain period of time, for example – a month or a year. Auditing also helps to identify the potential growth of the company. They help to calculate the company’s profits and losses. In simple words, An audit examines your business’s financial records to verify they are accurate.
Benefits of Auditing:
Auditing helps the company in many ways. There are many auditors in Dubai who perform auditing well. KGRN has a team of approved auditors in Dubai with decades of experience and professionalism. Here are a few ways the company benefits with our auditing services.
- Detect and prevent fraud
- Helps to improve business
- Better planning and budgeting for the company
- Helps to identify potential cost savings
- Gives a detailed report of all the financial calculations
- Promote best practices for better financial management
- Helps with legal advice to ensure the safety of the company
- Identifies operational inefficiencies and wastes
- Provide insight on losses
- Calculates the value of assets that decreases overtime
- Helps with efficient and responsible use of resources
- Assist management in addressing complex, cross-functional issues
Types of Audit:
There are three main types of audits:
- External audits
- Internal audits
- Internal Revenue Service (IRS) audits