As a thriving business in the UAE, you must ensure that internal and external audit for your company is conducted regularly and seamlessly. However, audit firms in Dubai require some level of reporting standard and professionalism with their clients so that any obstacles do not hamper their audit reporting during the audit process. The audit process in UAE may look like standard procedures; however, here are a few common mistakes that may tend to extend the timeline or cause disruption during the audit.
1. Miscommunication with the Audit Company
There are agreed terms between the business and the audit company. However, before the audit process begins, you must ensure the communication with the independent auditing company in Dubai is transparent and communicated via emails. Miscommunication regarding the audit company requirements before and during the audit process can only prolong the audit process. To save yourself from such a situation, always dedicate a team of employees who will overlook the requirements of the audit team.
2. Not training the employees for an audit
Speaking to an auditor requires confidence and knowledge about the financial statements. Therefore it is essential that the team in charge of assisting the auditors must not give out excess information or the wrong information to the auditors. Incorrect data can be confusing, and auditors may spend time working on the wrong files. Therefore, a qualified team of dedicated employees for internal and external audits is essential for any audit process.
It is also often observed that employees give out excess information due to the nature of the audit. Hence, preplanning is essential before any staff provides free handouts and spends more than the required time with the auditors.
3. Not completing an internal audit before a statutory audit
An internal always ensures you are ready for an independent audit firm in Dubai to come to your office premises and audit your financials. However, with no proper internal audit, your external audit can be at a six and sevens. An internal audit will always provide the first look at your financial statements to be presented and assurance to the business about the smooth operations of its finance department. However, an incomplete internal audit can lead to an increase in the auditor’s billable hours due to the excess work that needs to be added by the auditors.
4. Overdependency in accounting software
Implementation of cheap accounting software or high-end software always requires qualified accountants to understand the financials. Companies must have a mindset of autopilot when it comes to accounting software. There is always room for error if the accounting data entered is incorrect. Such incorrect data leads to misrepresentation of financial statements to the auditors causing the auditor to rethink the company’s internal controls.
A Top audit firm in Dubai will provide you with the key areas where staff are overly dependent on the accounting software and that need improvement. A qualified person within the finance team must regularly analyze the financials to avoid any mistakes that statutory auditors can point out.
5. Unorganized financial records
Accounting records from the previous years must be presented to the auditors as if they were around yesterday. Receipts, invoices, bank statements, expense records, and hard copies of the tax report are essential documents that must be handy when initiating the audit process. Many employees are seen running around when they are required to provide record backups by the auditors, which is both unprofessional and disorganized on the part of the business. Hence once the audit engagement plan is initiated, the project manager must ensure all the required financial records are ready for presentation.
Read more: Why is audit important for your business?
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We ensure to provide proper feedback through the process and explain to your team what was right and what went wrong to avoid future mistakes, as we have worked with several clients for over several decades to implement these recommendations. Contact us today for a free consultation.
Theshani is a Senior auditor and has experience of 4+ years in providing audit assurance and advisory services to a wide range of industry clients. She continues to stay on top of ever-changing industry dynamics by continuously learning and developing expertise.