A corporation’s financial records are checked and validated as part of an audit to verify their accuracy and true assessment. Auditing financial documents can be a demanding process, however, planning and preparation can assure that your financial audit goes smoothly and successfully.
Most businesses undergo audit procedures when banks need audited financial reports or are looking for outside funding, except those operating in Dubai-free zones. The financial audit must be taken seriously as it is a valuable tool for the growth and development of your business. Top audit firms in Dubai are trusted points of contact for financial auditing services.
Getting ready for an audit: tips and tricks
In order to conduct a successful audit, a lot of effort must be put into the planning. Financial data might take a few months or a few weeks to process, depending on how complicated it is. Organizing and setting standards for the audit require time, so additional resources should be set aside for last-minute preparations. To ease pressure in the weeks leading up to audits, it is important to keep records up-to-date throughout the fiscal year.
Examine the audit team
Make sure the auditor is as trustworthy as they claim to be before giving them access to your financial data. Meet prospective auditors and request a meeting with the person in charge of your accounts. You can acquire their assistance after you are confident in their skills and that they can guarantee a quality financial audit process.
Adhering to accounting regulations
Every year, updates are made to both accounting standards and legal and regulatory obligations. As a result, it’s critical to acquaint the accounts department with new accounting innovations put forth by government entities.
Include deferred rent as well
When it comes to auditing, the value of a lease must be evenly distributed over the specified duration in accordance with Generally Accepted Accounting Principles (GAAP). For financial reporting purposes, one will still be required to recalculate even if a few months are rent-free.
Reconcile all significant accounts
Current liabilities, inventory, accounts receivable, accrued liabilities, and any other significant accounts should be reconciled. The most important step you can do to get ready for your financial audit is by far this one. The majority of modifications found during audit fieldwork concern improperly drafted reconciliations. Furthermore, you must make sure that any big reconciling items have your endorsement.
Analyze organizational modifications
If the company has previously undergone an audit, it is important to take into account how its financial status has changed since that time. The auditing process may be significantly impacted by fresh investments in projects, as well as by grants and government backing.
It’s important to take into account non-financial developments as well, such as modified management accounting principles and internal control procedures.
Monthly record reconciliation
Your company’s books need to be closed off each month. By doing so, you may track down all of your costs, uncover any anomalies or discrepancies, and stop the damage from getting worse.
Review the audit notes
Review the audit notes and suggestions from prior years. Adapt to new situations and be cautious of repeating old errors to progress.
Establish a schedule and allocate tasks
Examine the auditors’ list of needs, and give each one a capable, accountable person and a deadline. To complete schedules as quickly as possible, coordinate with the auditors.
Organize and get prepared to share all working documents and schedules, including:
- General ledger covering the fiscal year
- Yearly budgets
- Bills and invoices
- Transactional history
- Internal financial records
- Long-term debt
- Property and equipment
Financial statement audits can be a difficult and stressful process, but with good communication and coordination between the business firm and the auditors from audit firms in Dubai, it is possible to make the process as easy as possible for everyone involved. You can ultimately save time and money by being adequately prepared for a financial audit.
Top Audit Firms in Dubai
The auditing process is highly complex. The following tips can help you optimize your process and increase your profitability.
Rather than overpromising and underdelivering – and burning out your team – seek seasonal or temporary help if you must move on to other initiatives.
Your initiative may require consulting assistance depending on its complexity. It is not ideal for your organization to fail to integrate an acquisition or implement an ERP because its attention was spread too thin.
Financial audits can be handled by Audit Firms in Dubai‘s team of highly qualified auditors and accountants. As a global provider of audit, accounting, and taxation, we provide a wide range of services to our clients in the UAE. We provide strong internal controls and robust internal processes. Feel free to contact us for further assistance.
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.