Overview of External Audit Services in Dubai
External audit in Dubai involves a routine checking of company records and procedures. It is conducted by certified auditors who are not employed or part of the company that is being audited. In most cases, external auditors are designated by the company’s shareholders. Regular external audits are essential to maintain the accuracy and transparency of financial statements. It gives an unbiased view of the accuracy of the statements and the financial situation of the company. Avyanco offers external auditing services by the best auditors in Dubai. Our auditors will state their expert opinion on the financial statements prepared and presented by the company’s management. The external audit services offered by Avyanco will ensure that your business accounting and auditing remains flawless.
Why external audits are performed in Dubai
External audits are mandatory for businesses registered in the UAE. The International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) compliance standards give much importance to the final published External Audit report. The external audit report also acts as a decisive financial document during license renewal, loan sanctioning, etc. Avyanco’s expert audit team undertakes auditing services in Dubai after in-depth planning and deliberation. Our team comprising top auditors in UAE take time to fully comprehend each business and their financial situation. In this process, our auditors can detect the crucial areas and risks to which they are exposed and then focus their audit efforts on those. We organize our external audits only after a thorough assessment of our client’s internal controls and resources. This enables us to provide the most reasonably-priced external auditing services in Dubai. Our team’s recommendations allow our companies to make sound business decisions that improve operational efficiencies.
Get unbiased expert suggestions
Avyanco’s team of external auditors are skilled and qualified professionals who evaluate and improve the client’s business processes to decrease the problems caused by improper financial data. Since they are not associated with the company, they can provide completely unbiased suggestions and add neutrality to the audit report.
Validate their accounting information
Usually, entrepreneurs and small business owners do not have in-depth knowledge of the required level of accounting. They provide basic accounting information, which is then reviewed by the external auditor. Our team of top auditors in UAE verifies the information and offer insights on its reliability and validity. By validating their accounting information, business owners can easily secure loans from lenders and investors.
Check for errors
Conducting an external audit can help your business recognize errors in its financial statements. Moreover, professional auditors will not merely check for errors; they also recommend corrective measures for any errors they find in your financial information.
An external audit report is the best way to ensure all the business stakeholders that the financial data is accurate. This, in turn, enhances the trustworthiness and credibility of the company.
The advantages of regular external auditing in Dubai
- External audit ensures transparency of financial statements.
- Promotes good business practices.
- Identifies weaknesses in internal audits and control procedures.
- Acts as a tool for the senior management to make decisions on operations and investments.
- Helps in smoothening tax audits and filings for claims.
- Improves trust-factor of the company among stakeholders and investors.
Flowchart of external auditing in Dubai
The procedures followed for external audit in Dubai include
- Assigning a qualified Auditor
- Financial assessment of the business by the assigned auditor
- Company audit conducted by the auditor
- Verification of transactions and assets of the company and evidence collection
- Preparation and submission of the final audit report.
The External Audit Procedures
A well-planned audit encompasses all financial items with audit materiality. An audit involves collection and evaluation of evidence in support of conclusions arrived. The procedures which will assist the auditor in this direction are.
- Planning and risk assessment. Involves gaining an understanding of the business and the business environment in which it operates, and using this information to assess whether there may be risks that could impact the financial statements.
- Internal controls testing. Involves the assessment of the effectiveness of an entity’s suite of controls, concentrating on such areas as proper authorization, the safeguarding of assets, and the segregation of duties.
- Substantive procedures. Involves a broad array of procedures, of which a small sampling.
FAQs on external audit services in Dubai
1. How long does an external audit in Dubai take?
On average, external audits in Dubai take around three months from beginning to end. This includes four weeks of planning, four weeks of fieldwork, and four weeks of compiling the report.
2. Is it mandatory to have an external audit in the UAE?
The Commercial Companies Law in UAE decrees that regular external audit of accounts is required for all mainland companies.
3. Do FZE companies need to have external audits?
In the free zones, authorities demand audit reports as a mandatory requirement for license renewal. Some free trade zones like DAFZA, DWC, JAFZA, DIFC, DSO, and Creative City make it compulsory to submit audited statements.
4. Why do I need an external audit report in Dubai?
An external audit report can be of immense value for business since it is required during the loan sanction by banks in the UAE.
5. What is the purpose of conducting Financial Statement Audit?
An independent expert opinion from the management of the company is essential to ensure what is reflected through balance sheet/statement of financial position or Profit or Loss Account whether it is reliable or not. The purpose of a financial statement audit is to add credibility to the reported financial position and performance of a business
Why Choose Avyanco for external audit services in Dubai?
Avyanco Business Setup Consultancy provides business setup and accounting services in Dubai and other Emirates. Our team of best auditors in Dubai are experienced and skilled in providing top-quality auditing services for our esteemed clients following established best practices. We help our clients in carrying out comprehensive and precise performance analysis. Avyanco provides an accurate assessment of the competence of your internal control environment. Based on this assessment, our auditors share their valuable suggestions and fixes that help improve the business. Avyanco’s auditing services in Dubai go way beyond routine financial analysis and are customized to meet the specific auditing needs of our clients
If you need any kind of assistance in revamping your financial strategy or conducting an unbiased expert external audit, please get in touch with the Avyanco team of external auditors in Dubai at the earliest.