Accurate data representation is essential for a growing business because it is shared with third parties, the government, shareholders, and potential investors. How do you get it? An Audit is not limited to financials but applies to other functions of an organisation. Audit firms in Dubai ensure data representation of their clients is well organised.
Any organisation aims to grow and generate more profit. Both internal and external audits are vital in building and sustaining the organisation’s strategy. An internal audit is conducted by the company’s employees, whereas an external audit can be undertaken independently by any CA firm in Dubai. Maintaining financial records requires qualified accountants; hiring them doesn’t mean companies must audit their work.
How does audit benefit your business?
A business audit in Dubai or any other Emirate is a statutory requirement for the business. The business set up laws in the UAE. protect the interest of its investors. Hence, statutory audits are mandatory for all types of companies across the UAE. Apart from the government, business owners must be reassured that their company’s financial health is crucial both ways.
Some important reasons to conduct an audit are
Maintain an accurate financial record
If you are starting your business, you have your focus on its growth. The recording of financials is either done by your accountant or by a third-party accounting firm. The impact of accurate financial records is seen after being in business for a few years. Banks and other financial institutions audit your financial statements before passing any loans or financial aid to your organisation. Hence, internal and external audits can give you the confidence to present your company’s financial data on paper. In case of misinterpretation or error in recording your accounting entries may lead to a fine as per the local laws. Hence, an internal audit is essential within the business before conducting a statutory audit.
To follow Regulatory Requirements
In the UAE, the Internationally Financial Reporting System, IFRS, is the primary form of financial reporting. Therefore, a business should have its financials in the IFRS format to comply with the regulatory requirements. An audit firm in Dubai can independently audit the company’s financials and present them to the government. As a business owner, you must contact a CPA firm in Dubai to avoid any fines related to a financial audit.
Read More: FAQ on Auditing in Dubai
Streamline internal controls
Upon studying the company’s finances, auditors provide an assessment of the internal controls. An auditor ensures that the current internal control management process is followed and suggests better ways to run the financial department’s process to avoid theft and fraud. On the other hand, the auditor will also mention any loopholes present in the present company set up for necessary changes to be the organisation before it’s too late.
Licensed audit firms only authorise an audit in the UAE. Larger firms hire audit firms in Dubai to conduct internal and external audits. However, smaller-sized firms have an accounting department audited by an external audit company in Dubai.
The efficiency and health of a business can be measured based on the accuracy of its financial statements. Auditors examine the financial statements, understanding the revenues and expenses changes over time. Auditors are CPA.s qualified to see through the numbers presented on the financial information and provide a financial report. However, Public Accountants also provide crucial business advice that helps restructure and re-strategise companies’ policies and S.O.P.s.
Read more: External Auditor Responsibilities
How to select the audit company for my business in the UAE?
Audit Firms in Dubai are one of the Top audit firms in UAE. over the years, our clients have found us to be an efficient and reliable audit partner. If you are a new investor or just starting a business in the UAE., Audit Firms in Dubai can seamlessly assist your company with internal and external audits to grow and make informed business decisions. An audit helps owners control their rapid business growth by aligning their bookkeeping efficiencies and bringing improvements to existing and outdated policies. Contact us today if you want a second opinion on your financial statements.
Kasun Liyanage is an Audit Manager with over 7 years of experience dealing with diversified corporate clients. He not only manages the team’s work schedule but also is an expert in handling audit areas such as external audits and fraud investigation, Internal control benchmarking and best practices and well as preparation of financial statements and IFRS compliance.