It is a widespread belief among many uninformed people in business that conducting an audit of a company is a waste of time. The feeling among the various businessmen is that the time and money which is being spent to conduct the audit can be utilized in a better way and in taking the company forward. This thought of the people cannot be much farther from the truth.
An audit does take up the time, fund, and other resources of the company but conducting an audit has various benefits which will enhance the company and allow the company to reach its full potential. With the increase in the number of companies in the United Arab Emirates, Audit and other financial services have a considerable scope as these are required by all the companies.
Let us have a look at the various benefits which a reputed audit firm in the UAE can provide to a growing company, but first, let us understand what an Audit is.
Meaning of Audit
In this context, the word Audit refers to a Financial Audit. A financial audit is conducted by a company or by a third party for a company. An audit consists of the scrutiny of all the financial books of the company by the auditors. The information which is received by thoroughly checking the books of accounts of the company will help the company to achieve its maximum potential.
An audit is usually of two different kinds. The first is an Internal Audit, and the other is an External Audit. An internal audit is an audit of the company which is conducted by a separate department of the company. The internal audit of the company is conducted by an employee of the company who has access to all the information available.
An External Audit is conducted by an auditor who is not a part of the team of the company. An external auditor is a third party that will check all the financial books of accounts of a company. It is usually a good idea to avail the services of an external auditor as the auditor will have the knowledge of how to conduct a proper audit.
Reasons to avail Audit services from Reputed Audit Firms
By availing the assistance of an audit firm which is considered as one of the leading names in the industry, a company can ensure that all the data which it finds is correct and the company can also benefit by the experience which the auditing firm has. The various benefits of availing such audit firm are:
●Better Utilization of the Resources of the company
An audit will allow the management of the company to understand better where it needs to put more focus. A company may be running many different procedures at a time, and some of them may require more attention than others. By conducting an audit of the company, the administration of the company can better understand where more resources and efforts must be put.
●Better Management of Taxes
The auditor will take care of the various taxation procedures for the company. It is the job of the auditor to take care of the taxation of the company and also find out if the company is eligible for any tax benefit. As a dedicated person is present for the management of taxes, the chances of following wrong procedures for the taxation or making a mistake in filing for taxes is significantly reduced.
●Expansion of the Company
By the proper allocation of resources, the administration of the company can better understand the direction in which it should pursue the development of the company. By adequately following the trends in the industry and the future of a particular sector, the company can expand into new markets.
●Increased Investor Confidence
Conducting regular audits will provide a considerable boost to the determination of both the present as well as potential investors. Audited documents are more reliable and more transparent, so these documents can provide information which the people can trust.
These are only some of the benefits which are available to a company when conducting an audit. If you want your business to flourish and reach its potential, you must do a periodic audit of your company. According to the law in the UAE, only an Approved Auditor can conduct an audit in the free zones. If you are looking for Audit and Accounting services in the UAE, then you must avail the services of JAXA Chartered Accountants. It is a leading name in the Audit and Accounting industry and will take care of all the financial requirements of the company. For more details, Contact Us. We will be happy to help.