A statutory audit is required by law and is designed to evaluate a company's financial health and records. They are generally undertaken for the general public. Audit firms provide an impartial and fair view of a company's financial health by reviewing its accounts & accounting processes.
Government organizations in the UAE must have their accounts reviewed by statutory auditors. A company's shareholders can select any qualified statutory audit in Dubai at the annual general meeting.
According to the UAE statutory audit requirements, auditing a company's financial records helps ensure that its finances are accurate. You must hire auditing firms in Dubai to evaluate your records.
Sometimes, audits are ordered by the government to screen and evaluate business performance. But what exactly is the purpose of statutory audits in the United Arab Emirates?
How can companies in the UAE ensure that their audit requirements are met? Our objective in this article is to examine how audit firms in the UAE fulfill the statutory audit requirements in the UAE.
A Statutory audit is a great option for businesses because it offers many benefits. Among the benefits of a Statutory Audit for a business are:
A statutory audit provision in the UAE fosters financial accountability, which benefits society. As a result, companies can present accurate financial data to the public. Audits perform a statutory inspection of accounting records, bank balances, and transactions related to the economy. An auditor is appointed by the General Meeting of Shareholders every three to five years.
An audit is usually conducted when the company is ordered to do so by the concerned authority. The following steps will explain how you can perform a statutory audit of your business:
To get a clear understanding of the workings and finances of the company, the first step is to go over the internal auditors' report.
This internal audit report will identify inevitabilities and provide solutions that will improve the profitability and effectiveness of the company. All these suggestions should be taken into consideration by the present auditor. The points should also reach the company's management.
In addition to providing a glimpse into how the company was ranked in the past, the previous statutory report will also help with establishing the company's statutory audit report.
Many businesses use accounting and auditing software to help them keep track of information about their business. The auditor is responsible for understanding accounting and auditing software and how they work because there are many options to choose from.
Above are merely a few of the steps. There are different business activities involved in every business. It is the responsibility of an auditor to understand these activities and, if necessary, to analyze more options to provide the auditor with more details about the business.
Providing that a company's management follows the abovementioned process, the statutory financial audit will be conducted comfortably and cleanly. To obtain the complete and desired result, the auditor must add more steps to the statutory process in addition to the above list.
Farahat & Co ensures that all financial transactions are recorded accurately and error-free for its clients. You can count on our professionals to assist you with all your accounting and auditing needs.
To meet the needs of our clients, we always provide personalized and customized services. Whenever our clients have questions about statutory audit requirements, we are always available to answer them. Don't hesitate to get in touch with us for further information.
Read also: How Does A Company Benefit From Internal Auditing?
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.