When your business is undertaking an auditing in UAE, you must be prepared to answer questions about the operations and provide transaction records. Transactions are tested randomly, problems are identified and inconsistencies are disclosed to the management.
For new entrepreneurs, auditing can be a daunting process. To help you understand the dynamics of auditing processes, we have compiled a comprehensive guideline inclusive of all essential information required to streamline your audit structure.
Auditing is assessment of documentation and evidence in assembling with business's financial and transaction activities. Financial audit authenticates if the account statements are free from mis-representations.
Auditors from well-known audit firms in UAE evaluate the transaction for the various factors to check whether the business is authenticated and check and controls are in balance to prevent illegal and unauthorized actions. There are various types of audits, operational, financial audits, tax, and investigated audits. A financial audit is a common audit that is performed in various businesses.
Why do you need it?
Audit is usually required for compliance to meet the specific requirements from stakeholders. It helps to show credibility the accountability, which is essential to growing the business; identify the inconsistencies that may raise the problems, and improve efficiency to gain the budget planning for the fiscal year.
Management role in business
Management plays a vital role in taking a proactive stance on identifying and resolving the problems. Any business management should be responsible for the solution, not for the issues, and makes the audit process effective for auditors.
Six Ways to Address Audit Inconsistencies
As a part of the management, you must address and discuss the audit results with a team of auditors to attain suitable solutions for each problem.
Here are the useful tips on how to address audit inconsistencies:
Discuss with the auditor about any primary concerns you have. Acknowledge the issues that are yet to be resolved. Take guidance from the top auditors in UAE for suitable actions. Efficient actions on identifying and rectifying the problems make the auditing process operative for auditors and businesses.
Acknowledge the remaining existing issues will help your business for an effective auditing process.
Address the audit outcomes in detail on the audit report because all the audit effects will be presented to you. Auditors usually discuss with management at the Audit time to obtain the reviews and evaluate management's planned action course.
After completing the audit report, it is valuable for you to include the proposed corrective action for each audit result acknowledged in the audit report. Providing documentary evidence to the auditor showing all the rectified problems would be beneficial for you.
Device efficient action and hold documentation on the implementation and findings. Many findings require time to correct as you implement the necessary action to resolve the identified financial and operational issues document performed work.
Documentation is essential if the auditor performs a follow-up audit to control the issues because it protects you from the legal disputes that arise from the problems.
Consult the Trusted Audit Firm in Dubai
During the audit process, an auditor may constitute questions about the company's operation; for a smooth and effective method, the management must answer the questions and provide the documentation with evidence for all the transactions. The auditors may recognize certain inconsistencies in the audit report, and the management needs to be prepared to know how to address these inconsistencies. To get the most from the auditing process, seeking professional help from the best audit firms in Dubai is always recommended.