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Dubai is a global economic centre, where businesses flourish and grow extensively. The accelerated economic growth rate in Dubai attracts investors and business owners. The government frames rules and regulations to be followed by every company doing business in Dubai. One such mandate is an audit. A financial audit is an examination and objective evaluation of an organization. It is to ensure that all the financial statements are accurate and fair, also in compliance with applicable Dubai tax laws and regulations.
Auditing involves inspecting the financial records of an organization to authenticate the reliability and accuracy. The government, shareholders, investors and creditors rely on the audit report to make critical decisions. The person who carries out an audit is called an auditor. The auditor expresses his opinion about the financial status of the company.
Advantages of Audit Service in Dubai
Auditing is a necessary task in every organization. All the organizations make a book of accounts and audit it with the auditor. Following are some of the advantages of carrying out an audit.
●Locate Errors
Auditing helps to detect the errors and identifies the fraud in filing a financial statement. Once the errors are located, the auditor suggests the clients for a change in accounting system and improves the internal system of control.
●Maintain Accounts
The auditor checks whether the accounts are correctly maintained or not. Therefore auditing gives pressure to the company to maintain accounts properly.
●Obtain Loan
Financial institutions provide loans to companies based on audited financial statements. Auditing is mandatory to obtain loans.
●Facilitates Sales of Business
Business can determine the price of business through auditing. Business people can sell their business based on the valued assets and liabilities.
●Tax Assessment
Tax authorities calculate tax based on the audit report submitted by the auditor. The profit and loss and the sales growth can be estimated and taxed according to with the help of an audit report.
●Comparison
An Audit report facilitates comparing the book of accounts of the current year with the previous year. Comparing books of accounts helps to detect errors.
●Helps to Prepare Future Plan
Being the audited report remains true and correct, it is easy to plan the business.
●Increase the Goodwill
Audit reports reflect the credibility of the business. The financial position of the company increases confidence among the public and increases the goodwill of the company.
Auditors in Dubai
An auditor is a professional who reviews and verifies the accounting data. The primary objective of an auditor is to protect the business from fraud and point out any discrepancies in the accounting method. He checks the validity of the transactions made by the company and forms an opinion on the financial position of the company. He undertakes the responsibility to ensure that the company is working with social and environmentally sustainable policies.
Following are some of the points to be kept in mind before choosing an auditor in Dubai:-
1.Reputation
The reputation of the auditor should be evident and readily apparent to you. The auditor or the firm which he belongs to should be in a stage of rapid growth. Partnering with a reputed auditor helps the firm to establish standards for assessment and audit practices.
2.Experience
Hiring an experienced auditor is beneficial for the firm. It is ideal to appoint an auditor who possesses expertise in a particular field of business. The auditing process will be transparent and straightforward if the auditor is well-versed with the industry goals.
3.Transparency
Compatibility between the company and the auditor matters the most in auditing. It is essential to choose an auditor who understands the company requirements. An auditor is to be friendly, responsive and honest.
4.Negotiation
Partnering with an auditor or an auditing firm is like a business transaction. To get the best possible service, the company needs to negotiate with the auditor.
Why Avail Professional Service?
The audit is a systematic process to analyze the accounts of an organization. The audit requires specific rules to be followed. It involves functional and technical aspects. Only a professional could give a genuine opinion about the financial status of an organization. For this reason, the service of a professional auditor is necessary.
How JAXA Helps You?
JAXA Chartered Accountants is a Dubai based veteran audit firm. Our audit experts help you to carry out the auditing services and sort out all the audit issues. We help you to plan the business and increase profit accordingly. We have professionals with specialized knowledge and long-run experience. Please contact us for hassle-free service; we are glad to assist you!
