Abu Dhabi is considered one of the safest, fastest growing and affluent markets in the world. It is turning itself into a platform where multiple businesses from all over the globe can set up their businesses there. Due to the sheer number of incoming companies, the government of the UAE has set specific rules and regulation for all the businesses operating in the country. Conducting audit services in the area is one such mandate due to which there has been a rise in the number of audit firms in UAE.
The process of auditing refers to an official check of a company’s accounts, books and all the financial data with the aim to provide a complete picture of the economic status of the company. The result would be an audit report which would help us in the identification of the legitimacy of the business transactions conducted and whether they are ethical or not. In the earlier days, auditing focused only on figures and cross-checking of the business insights. Gradually the concept of audit and assurance has widened its scope in both internal and external matters.
This article aims to provide you with all the necessary details regarding an audit and how you can choose the best auditor for better performance of your company.
Why Does a Company Need Auditing?
Auditing deals with inspection of the company both in the internal and external matters. Now, the need for auditing arises because of the following reasons:
A stakeholder can take a better decision regarding the company if it is known to him that who in the business is accountable for what.
2. Builds Trust
The audit function helps the tax officers, financial institutions and the company management and helps in keeping a degree of trust in all the activities of the business.
3. Provides a Comprehensive Review
Auditing provides a 360-degree view of the financial health of the company and is very helpful in planning the future course of the business.
4. Increase in Credit Rating
Audit report boosts the credit rating and credit worthiness of a company by showing the exact picture of the company which ultimately leads helps the investor to decide to invest in the company.
The points mentioned above highlight the fact that auditing is one of the strongest pillars of business. This function will not only help in the proper utilisation of the resource but will also assist in the future planning of the company. Selecting an auditor can be a very daunting task for any business, and this decision requires much forethought. Some of the important points that one needs to follow before selecting an auditor are as follows:
Precautions before Selecting an Auditor
As we have seen that auditing is one of the private and most essential parts that a company needs to deal with. Below mentioned are a few points that a company needs to seek before selecting an auditor.
1. Evaluate the Expertise
As the details of the company would be given out to a third party, it is very essential that you assess the strengths and weaknesses of the auditor. Also, the emphasis given to the security and confidentiality of the data provided should be given top priority. Choosing the right auditors can help remove half the stress caused to the investor.
2. Ability to Adapt
The auditor you select should be very flexible and should be able to adapt himself according to the organisational culture of your business. Out of the multiple audit firms in UAE, you should choose the services of the firm which has the feature of customisation and can provide services tailored to your business.
3. Experience Matters
An auditing firm with previous experience of working with similar kinds of activity can have a profound impact as the company would understand the various requirements beforehand and would be able to arrange them with the aim to provide a seamless service.
4. Free and Clear Communication
Transparency is essential in business matters as it helps both the employees and the investors alike. This free flow in communication helps in increasing the productivity of the employers.
One of the best options is to outsource the Audit and Assurance Services. Outsourcing of a business’ audit services have their share of risks and benefits. The benefits of outsourcing the audit and assurance service are as follows:
Why Outsource Audit and Assurance Services?
- The professional auditors have got a sound knowledge both of the audit process and the location.
- Cost and time saving as they eliminate the cost of training and recruitment and provide expert and quick support.
- Provides effective business solutions
- Help to prevent financial frauds
Outsourcing the audit process to an experienced audit company will not only provide the precise and correct reports but will also help the investors by ensuring transparency in the communication.
If you are planning to outsource your audit process in the UAE, then JAXA would be an excellent option for you. We are considered one of the top audit firms in the UAE. We have a diverse experience in the audit services, and our audit experts will help you prepare your audit reports without any trouble. For more information, do contact us today – we’d be happy to assist.