A statutory audit is an independent review of financial statements for a company or institution. Auditor’s responsibility is to determine if financial statements are true and fair and in compliance with all applicable laws and guidelines. This helps companies plan for the future and protects them from potential risks.
Auditors must identify and report any issues during auditing in order to fix any issues later. Audit Firms in Dubai‘s goal is to deliver timely and effective audits that exceed all statutory requirements.
Below is a list of organizations or companies that should be subject to statutory audits.
No matter how large a company is, auditing is necessary to verify transparency and efficiency in its operations. These include:
- Banks or investment firms
- Brokerage services offered by the firm
- Publicly traded companies
These are the stages of statutory audit procedures:
To help the auditor accept or apologize for the audit, it is important to know what kind of client the client is. Understanding the components of an internal control system is essential for understanding how it works (the accounting system mechanisms). If he is unable to sort the client accounts, he can put into practice the procedures of internal control systems.
Assess the risk involved in internal control systems. If it is agreed that there is a high level of risk in the internal control, systems that automatically identify what is missing in the final data audit are considered high-risk. The audit must understand the tuning systems in order to support the conviction.
Step 1: Analytical Scrutiny
Based on his evaluation of the systems of audit risk and internal control, the auditor decides the nature, timing, and size of the audit.
Step 2: Evaluation of Audit Results
The auditor concluded the audit. He decided to assess the audit results and draw his own conclusions. An auditor’s report describes the scope of audit work. This section contains the auditor’s final report. It clarifies the findings concerning fairness in each financial position and operation.
The Office of Internal Audit Services will conduct a follow-up audit approximately six months after the publication of the audit report. This analysis will determine whether corrective actions were taken.
Step 4:Auditing Statutory Is Vital
A statutory audit is required by law for every company in order to present its financial picture to the relevant authorities.
Step 5:Valuation and Evaluation of Financial Assets
After being prepared by employees, accounting records are checked by an external auditor. Internal audit firms in Dubai are responsible for ensuring that financial records are accurate.
Step 6:Establish Credibility
Reputation plays an important role in the growth of a CA company. Investors will be attracted to a credible company. It is also helpful in gaining government confidence, who now trust the company. Customers perceive the company as a positive brand that fuels its growth.
Step 7:Recognizing and Correcting Errors
An internal auditor inspects all books of accounts to identify errors and omissions during the auditing process. These errors and omissions can be corrected in order to keep accurate financial records.
Step 8:Reduce Fraud Risk
The financial records of a company can’t be independently audited without external auditing. Employees may commit scams that go unreported for a long time. This can lead to reputational damage and loss of money.
Step 9:Get an Objective and Independent Opinion
External auditors examine all financial information of the company and are the best source of current financial information. An external auditor can give an objective opinion on the operation of an organization. A certified internal audit in Dubai can provide valuable insights into the performance of the business.
What Is A Statutory Auditor in Dubai?
Audit Firms in Dubai are committed to providing exceptional audit services for our clients. We provide proactive advice and insights that go beyond the basics.
Our goal is to minimize any impact our work has on your day-to-day operations. However, we will still maintain a thorough approach, which includes reviewing documents, recalculating, sending questionnaires, checklists, and reviewing and analyzing control and system data. This is a great way to ensure the success and growth of your organization. Audit Firms in Dubai offers a variety of internal auditing services in Dubai.
We are a reliable statutory audit services provider and have operations in Dubai and across the northern emirates. We offer both statutory as well as non-statutory audit services. Contact us to learn more, and whether your company meets the government’s exclusion criteria.
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.