An audit entails the review or examination of a company’s books of accounts. It is typically conducted by approved auditors in Dubai followed by a physical inventory check to ensure that all departments are adhering to a defined method of documenting transactions. It is done to ensure the correctness of the organization’s financial accounts as well as assess compliance with the state’s commercial rules and regulations. There can be several types of audits in Dubai and each is conducted by approved auditors. The audit helps evaluate where the company stands, what is the current financial condition of the business, and determine compliance with applicable rules and regulations.
Are you operating a business in Dubai and want to be on top of your business’s financial health? Do you also want to comply with the corporate and commercial regulations and laws in the country? Do not look further. The guide tells you everything you need to know about audit and its types.
What is an Audit?
A financial inspection that is performed independently without any bias is called an Audit. In an audit, the auditor would look into all aspects of a company’s financial activity, whether it’s profit, sales, debt, salaries, and even the individual bank accounts of the employees in some cases. Auditors make sure that the financial situation in a company remains pure and transparent. Auditors also audit the finances of individuals as well. They check the finances involved in every activity done by a person, a company, or a firm. To keep the integrity of your company intact, it is important to hire a good auditor who can audit your financial activities and can judge the financial health of your company.
The importance of auditing in Dubai is as follows:
- Plans and Budgets: Get notified about costs and their allocations. By selecting this validated information, you can prepare your budget for future business development.
- Compliance: Audits help prepare annual financial statements under financial standards and regulations.
- Reliability: Validated information enhances the credibility of owners who invest more in companies that increase their market share.
- Error and Fraud Detection: Through a critical review of finance, errors discovery due to omissions, fees or principles, and intentional fraud.
- Consequence: Provide evidence or documentation to support transactions and cash flows
What Does an Auditor Do?
Auditors work with a range of clients to review Audits Books of Accounts and financial documents for accuracy and compliance with laws and regulations. Some audits also include a detailed review of a company’s accounting policies and procedures and Audited Financial Statements that all Government Authorities and Financial Institutions of UAE accept. In addition, Auditors incorporate their advanced systems to store and maintain financial data, verify and Vouch for all financial transactions, ensure timely delivery of gratified exchanges commission correctly.
Types of Audits in Dubai:
There are different types of Audits:
1. Internal Audit:
Internal Audit is an independent and consultation-based activity that is all about adding value to your company and helping it improve its business operations and making it more efficient.
2. External Audit:
External Audit is an external financial inspection of a company where all of its financial statements are inspected and analyzed. External Audit happens according to a set of certain rules and regulations. This activity is done to validate the financial records and paperwork of a company or a person. These records are checked to make sure there is no fraud or embezzlement in the financial activities of a company or a person.
3. Sales Service Audit:
You can perform a sales audit to review the sales collection process, identify potential lack of control, and ensure that your tenant is compliant with the lease. It also guarantees the total sales reported to the proprietor.
4. Statutory Audit:
A statutory audit is a legally required audit that evaluates the company’s financial position and financial records.
5. Due Diligence:
Due diligence auditing is the process of assessing an organization to assess its financial condition and performance.
6. Compliance Audit:
This type of audit reviews unit or department policies and procedures to ensure internal or regulatory standards. This audit regulates industries and educational institutions.
7. Construction Inspection:
This audit reviews the costs incurred on a particular construction project and ensures that the costs incurred on the project are reasonable. It includes activities, such as reviewing contracts awarded to contractors, prices paid, billing overheads, order changes, and validity of completion.
8. IT Audit:
Auditing includes a review of your IT infrastructure, especially if your company uses accounting software to manage accounting journals. Therefore, such research deals with research on integrated IT systems.
You need to choose the audit services based on your audit requirements. If you are still determining what type of audit is right for your business, you should connect with experts and discuss your needs in detail.
Steps for Audit Performed by Approved Auditors:
- Preparation of Documents (copy of the previous audit report, financial statements, ledgers, bank statements, receipts, etc.)
- Prepare for the Audit (copies of minutes of board committee meetings, company’s regulations, etc.)
- Commencement of audit (Compliance with the company, jurisdiction, and country policies about internal controls, financial statements, and software applications.)
- Report Preparation (to handle the errors or discrepancies found.)
- Closing Meeting (to discuss, manage and resolve the auditor’s findings.)
Documents Required During Auditing
- Reports on the Payroll
- List of All the Bank Accounts
- Copies of Legal Documents
- Board Meeting Minutes
- List and Evidence of all the Transactions
- The General Ledger
- Trial Balance of the Company
- Copies of Loans, Leases, and Material Contracts
- Loan Statements
- VAT Returns
- Anti-Money-Laundering Check by Auditor
Benefits of Hiring Approved Auditors in Dubai
1. Provides Value Growth and Process Improvement
Internal audit plays a significant role in driving value growth and improving existing business processes and practices. It raises prevailing standards to industry benchmarks, eliminates redundant and outdated procedures, and paves the way for innovation and better outcomes. It increases employee productivity, improves operational efficiency and quality, and accelerates organizational growth.
2. Guarantees Effective and Timely Management Reports
Internal audit supports the finance and accounting departments in regular, error-free management reporting. In addition, the internal auditor reviews the report submitted by the accountant before submitting it to management. It helps management make the right decisions and plan at the right time.
3. Protect your Business Particulars and Assets
Every entrepreneur makes a minimal investment in assets from the beginning to the organization’s end. These assets can be stolen or misappropriated over some time. The provision of internal audit services is very effective in preventing asset theft. These regulations prevent heists by introducing appropriate internal controls on asset acquisition, usages, and disposal.
4. Ensure Assessment of Risk Management Process Before Disenchantment
In today’s world of globalization and technological advancement, business in UAE has become highly dynamic and exposed to various operational, technical, financial, legal, and compliance and mitigation of risks. They evaluate risk management processes within the organization and check that they are functioning correctly.
5. Accurate Evaluation of Internal Control
An important reason to conduct an internal audit is to evaluate the effectiveness of the design and operation of internal controls, thereby providing management assurance of these controls. The primary purpose of catering inner audit services in Dubai, UAE, is to identify existing gaps in internal control and offer the necessary recommendations. Through this process, an internal audit seeks to prevent fraud, avoid embezzlement, and improve the financial credibility of operations.
Cost of Hiring Approved Auditors in Dubai
The cost of an audit in Dubai is typically around AED 46.50 per hour, but this price can fluctuate depending on the task. For simple auditing tasks or non-profit audits, the auditor’s price can reach AED 47 per hour. However, you need to pay a high fee of AED 210 per hour for more complex tasks of Audits in Dubai.
When Should You Hire an Auditor in Dubai?
You should hire a good Auditor as soon as you register your business in Dubai or as soon as your company starts generating profit. This will keep your financial structure organized and free of all frauds and loopholes since day one.
Many Audit firms in Dubai offer both External and Internal Auditing services. However, they don’t have the kind of highly qualified and experienced team that we do. We have made many financial systems smooth, efficient, and fraud-proof. We are Avyanco, the best Auditing Firm in Dubai.
How Avyanco Auditors can help you?
With a team of certified approved auditors in Dubai, Avyanco offers all kinds of auditing and guarantee services to meet the business needs in this dynamic global environment. In addition to auditing services in Dubai, Avyanco provides accounting services, financial advisory services, tax advisory services, internal audits, and other tax-related services.
Do you need audit and warranty services in Dubai? Avyanco experts ensure that the company’s accounting, auditing, and backup procedures are responsive to market movements and that stakeholder interests are well protected.
