5 Tips to Consider While Conducting the First External Audit

Jul 2019

Implementing an audit process in an organization is a tough phase as it reveals the complete insights of the company’s activities and performance. However, considering this fact you can’t delay the process. Moreover, taking the first step towards it might be difficult for you as you may not be aware where to focus more and which process or department deserves your less attention. Acting on part of the information or without any information can become wrong as it gives a negative impression to the people and affects the goodwill. At the same time, it becomes essential for you to understand that scoring a higher number in the audit report would lift your company to the next level.

If you are planning to take a step forward and work on the audit processes of your company, then this guide will help you to understand the five factors that you need to consider.

Keep reading!

Why is Audit Essential for a Business?

The process of audit deals with scrutinizing all the data of the company. This includes even understanding and analysing the minute details of an organization. Performing the audit service will help you to examine the business performance in a particular way. Moreover, the audit helps an organization to figure out the best possible steps to minimize the errors. To know more about the importance of audit services in an organization read the below-mentioned is specific tasks that will help you to carry out the process in an error-free way. Let’s have a look.

  1. Understand the Basics

The fundamental rule to excel in any business is to understand the basics of the trade. Before conducting an audit in your business firm, you need to have complete knowledge of the business process. This will help you to have a clear idea, and you will be able to answer the auditor in regards to any query regarding the business processes.

  1. Gather the Proper Documents

The second thing that you need to keep in mind is that you should keep all the company documents handy. During the external audit process, the auditor might end up asking you to present any of the essential documents. Presenting the documents within a short span builds a sense of trust and helps to complete the process at a faster pace.

  1. Streamline the Internal Processes

To ease the external audit process, it becomes way essential that the internal proceedings are sorted and streamlined. Do make sure that your accounting books, tax and VAT scenarios are adequately maintained, and the employees are well-versed with the company’s current scenario. This helps the audit to understand your company in a better way, especially when they end up interviewing the employees of the organization.

  1. Hire a Professional Expert and Get Involve in Discussion

One of the surest ways through which you can get a clear picture of your company’s performance is through an external audit process conducted by an external auditor. The main reason behind this is that an external auditor turns out to be a professional expert who ends up dealing with numbers every time, which makes their calculation perfect. Making the audit decisions in-house may not turn out to be that accurate as done by the professional experts, and can result in conflicts at a later part. Moreover, such professionals deal with several clients prevailing in different industries, which will help you to gain more insights.

  1. Implement Expert’s Advice

After the completion of the external audit process, you will be receiving a list of advice from the experts. Do make sure that you get all your doubts clear and implement the required essentials at an early stage. You can also share your business plans and opinions on them from the experts that will turn out to be fruitful to grow your company gradually.

Conducting an audit process not only helps you to understand the company insights but will also pave out the way for your company’s future growth and betterment. By following the guidelines of an experienced auditor, you can boost the complete business proceedings. In general, an auditor ends up drafting different types of audit reports. As stated above, getting the tasks done by an experienced auditor would result in a better way.

JAXA Chartered Accountants is here to help you in this process. We are a team of highly experienced professionals dedicated to providing the best audit services in the UAE. Our audit experts are well-versed with the audit as well as the legal concept of business and can offer you customized solutions accordingly. To have a word with our experts, do contact us- we’d be glad to assist.

Read more on External Audit:

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Why Do Companies Require External Audit?

Reasons why External Audit should not be avoided

Reasons why External Audit is important to a Business

What are the Objectives of an External Audit?

4 Pre-Requisites of an External Audit

Importance of Data Analytics for Conducting External Audit