The United Arab Emirates (UAE) has been one of the most profitable business destinations globally for the past few decades. The UAE is a country that attracts international citizens because of its investment-friendly policies and stable political environment. The government is conscious of relying on oil and diversifying its economy to increase economic growth.
Small and large companies can hire Audit firms in Dubai, UAE to provide an objective report on their financial situation and to help them evaluate their actual performance. The UAE has many Internal audit service UAE specialists that can help entities meet their statutory audit requirements and provide guidance on operational and risk management.
How Audit function looks like
An audit checks for compliance of a product, process, or system with statutory requirements, international standards, International Financial Reporting Standards (IFRS), and other applicable laws.
An internal audit reviews the organization’s governance, risk management, and process control. Internal audit is proactive and aims to detect and mitigate emerging risks and assess whether controls are in place. These auditors have usually chartered accountants or certified internal auditors. They perform periodic reviews to find any gaps in business operations.
An external audit is required by law to ensure that an external auditor independently examines financial statements. These internal audit companies in UAE can be appointed by the board of directors or business owners. Although companies’ internal teams may prepare financial statements, only a certified internal audit in Dubai can assess their compliance with IFRS or other applicable laws.
The demand for high-quality audit services has increased exponentially worldwide, particularly in the UAE. This is due to the growing awareness of corporate governance and risk management. Organizations seek qualified auditors to outsource certain parts or all of their internal audit functions. This reduces internal fraud risk by providing an objective opinion. External auditors can also help organizations improve their operational efficiency.
Read also : Reasons for Hiring an Audit Firm in Dubai
How Audits do to help overcome financial challenges
Regular audits are becoming more important for businesses in many ways. Internal and external audits are essential to ensure accurate, transparent, and law-compliant reports. It increases trust among lenders, stakeholders, statutory bodies, and other stakeholders. In addition to identifying any gaps or future problems that might arise, an operational review is required by law.
These are just a few areas where an “audit culture” can be a great way to help organizations overcome financial difficulties and steer their business along the right growth track.
You may also like : Everything you need to know about Continuous Internal Audit
UAE Businesses should understand their position
Family-owned, start-up businesses and smaller family-owned businesses prefer to manage the business in-house and keep all information private. Decision-makers might not be able to see the business’s actual performance and its risks. Incorrect assessment of current performance could lead to plans for future development, which could result in opportunity loss.
An audit’s primary purpose is to provide a clear understanding of the company’s true state. A periodic audit can be a great way for the company to confirm all its good work and point out any potential problems. The auditors can suggest course corrections to help businesses address minor or major hiccups. This ensures that all stakeholders, government agencies, and internal and external stakeholders are provided. External auditors have industry expertise and can help even family-owned businesses turn perceived risks into opportunities.
Staying at par public policy and regulatory change
A key aspect of running a profitable business is to comply with all laws. Every new regulation or tax imposes new requirements on businesses. This forces them to reevaluate their business processes and methods. Business owners and senior managers often have difficulty keeping their books in order during uncertainty. An annual audit helps the organization comply with existing regulations and new ones. This reduces the chance of penalties for non-compliance.
Process improvement and efficiency
Internal audits can be a powerful tool for helping companies understand two important aspects.
- Whether current operations are per the agreed process.
- How efficient are current processes
This can often lead to adopting new technologies and new processes that improve overall efficiency. You can save time and money by reducing waste, eliminating non-value-add processes parts, etc. can be used to increase the profitability of organizations.
A system of regular internal audits may prove to be a valuable tool for organizations. It can challenge established processes and can sometimes open up new possibilities. An internal audit can help organizations stay ahead of their competition by bringing about continuous process improvements and helping them to improve.
Duly audited financial statements can be a powerful tool in building authority and credibility for your company, whether you’re looking to attract investors or build a strong brand.
Sometimes processes a UAE organization has built over time may not be strong enough to detect or prevent fraud. These frauds can lead to a loss of reputation or leakage in profits. Regular internal audits can be a deterrent and help to detect potential fraud early. This can reduce the risk of financial loss.
Investor confidence is maintained high, and loyalty to the company is maintained. This can be the most critical factor in the success or failure of financial market companies, such as banks.
Working With Internal Audit Firms In UAE
A pound of prevention is better than a pound cure when protecting your business. A professional audit company can help you gain an edge. Audit firms in Dubai built a solid reputation by helping clients with their audit needs and working on diverse portfolios.
Audit firms in Dubai focus is Business Risk and Control Reviews, Continuing Assurance/ Compliance Audit, Business Processes, Assessment, and Operating and Accounting Manuals. We are also registered with Dubai Financial Services Authority and Financial Services Regulatory Authority. Our professional auditors are client-focused. Our auditors have extensive experience in managing clients from all UAE industries.
Umapathy Anuruthan, is a Senior Auditor at the firm, holds a Business Management Degree and carries with him an experience of 6+ Years, having worked in two of the Big 4 audit firms. He has a ‘hands-on’ understanding of external audits and financial reporting and is well-known for his approach to ensuring the highest quality and accuracy in audits for clients of numerous industries.