Audit and accounting firms are essential to maintain the financial stability of businesses, each contributing unique responsibilities and expertise. Both fields rely on fundamental knowledge of accounting and bookkeeping, as well as critical thinking and computational skills.
Also read: Certified VARA Auditors in Dubai, UAE
How an Audit Firm Differ From an Accounting Firm?
The difference between audit firm and accounting firm are following:
| Aspect | Audit Firm | Accounting Firm |
| Objective | Audit firm validate the accuracy of financial statements. | Accounting firm aims to handle, record, and evaluate financial records. They help businesses keep precise records. |
| Engagement Duration | Audit firm engages on a periodic basis for an explicit audit period. | Accounting firm engage on a continuing basis. |
| Output | Audit firms issue an audit report. They provide an opinion of fairness on the financial records. | Accounting firms prepare financial statements. |
| Nature of Work | Audit firm evaluates internal controls and classifies domains of risk or non-compliance. | Accounting firms’ emphases on the usual financial processes and long-term financial preparation. |
| Independence Requirement | Audit firm keeps strict independence from the client to ensure neutral audit results. | Independence is not a stringent obligation. It allows for closer working relations with clients. |
Regulatory and Compliance Differences Between Audit Firms and Accounting Firms in UAE
| Aspect | Audit Firm | Accounting Firm |
| Audit Standards | Audit firm have to comply with International Standards on Auditing (ISA) as well as local auditing standards. | Accounting firm follow general accounting principles and local rules. |
| Regulatory Body | Audit firm regulates by the Financial Services Regulatory Authority (FSRA) of UAE. | Accounting firm regulates UAE Ministry of Economy and local Economic Departments. |
| Compliance Requirements | Audit firms are subject to robust compliance regulations. | Accounting firms are subject to general accounting principles with less regulatory inspection. |
Also read: How to Conduct Statutory Audit in UAE
When to Choose an Audit Firm or an Accounting Firm?
| Choose an Audit Firm | Choose an Accounting Firm |
| When you want an autonomous verification of financial records for stakeholders like investors and controllers, you should go to choose an Audit Firm. | If you want to prepare financial statements without the necessity for an independent audit opinion, you should go for accounting firm. |
| If you need to evaluate and improve the efficiency of internal controls and risk management, you should go for an audit firm. | You should go for an accounting firm for applying and upholding internal accounting systems and controls. |
| Companies looking for periodic, formal financial reviews, they should go for an audit firm. | For constant financial management such as bookkeeping, tax preparation, and financial preparation, companies should go for an accounting firm. |
| If a company is large, public, or multinational with intricate auditing obligations, companies should go for an audit firm. | If a company is small to medium-sized enterprise that needs all-inclusive financial management, companies should go for an accounting firm. |
Conclusion
Audit firms and accounting firms share many similarities, particularly in terms of experience. However, businesses often seek support from both, depending on their specific needs within the competitive landscape of the UAE.
Companies may encounter challenges in their operations, making it advisable to consult top firms in Dubai, such as Farahat & Co. Their skilled team provides timely assistance to help businesses address these issues effectively. Contact us today and we shall be glad to assist you.
FAQs
What Is the Difference Between an Audit Firm and an Accounting Firm?
Accounting and auditing are fundamental in the financial activities and records of a company. The main differences lie between their roles and objectives.
What Is One Difference Between an Accountant and an Auditor?
Accountants are in charge of formulating financial records, observing routine bookkeeping operations for a firm's processes, and making and filing tax forms. Auditors, on the other hand, validate the precision of financial statements, and tax filings, and search for signs as to why some figures don't fairly add up.
Can an Accountant Be an Auditor?
Yes, accountants who study auditing assess financial records to authenticate accuracy. They may focus on internal or external audits.
Is Every Accountant an Auditor?
it is important to note that every financial auditor is an accountant, but not every accountant is a financial auditor.
