Nobody can refute the various advantages of auditing for a business as it assists the management of the company in various ways. Auditing can prove to be a very essential function for the survival of a business. in the last couple of years, we have seen a rise in the concept of setting up a business especially in foreign places which allows the businessmen to operate in new markets.
One of the safest places which have come up as a business destination is Abu Dhabi. It is regarded as one of the sagest, and fastest-growing markets in the worlds and also provides an entry to the markets of the Middle East. People from all over the world are looking forward to setting up a business in Abu Dhabi. In response to the huge rise in the companies coming to Abu Dhabi to set up a business the local government of the jurisdiction has taken a number of steps that will help both the businesses and the government of the country. One such decision is to conduct a mandatory financial audit of a company. This decision has had a two-pronged effect as it will help the country as well as the business to understand the business in a better fashion and also it has allowed the growth of various financial firms related to business development and financial audit.
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.
Why Does a Company require Auditing Firms in Abu Dhabi?
Auditing deals with inspection of the company both in internal and external matters. Now, the need for auditing arises because of the following reasons:
A stakeholder can make a better decision regarding the company if it is known to him that who in the business is accountable for what function and business process. The audit helps in deciding the accountability of a particular business function.
2. Builds Trust
The audit function assists the tax officers, financial institutions and the company management in conducting their daily functions and also helps in ensuring 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 action for the business. It helps bot the company as well as the shareholder of the company.
4. Increase in Credit Rating
An audit report boosts the credit rating and creditworthiness 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 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 of communication helps in increasing the productivity of 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?
There are a number of reasons due to which a company should outsource its auditing and assurance services but the below three reasons perfectly summarise the need for availing of such 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 precise and correct reports but will also help the investors by ensuring transparency in the communication.
If you are looking forward to availing of such services for your company and require the assistance of reputed financial services providers, then JAXA Chartered Accountants will be able to assist your company in these matters of financial management of the company.
If you plan to outsource your audit process in the UAE, then JAXA would be an excellent option. We are considered one of the top audit firms in the UAE. We have diverse experience in 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.