8 minutes
In recent years, the number of companies has increased in Dubai due to the increased number of expats and the emerging economic development. Along with the increasing number of companies, the need for financial experts (i.e.) auditors is also increasing.
When we talk about auditors, you can do your company’s audit in two ways: An internal audit and an external audit.
Now, you might think, what do both terms refer to? Please check the table below for a better understanding.
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Internal Auditor |
External Auditor |
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Internal auditors, in other words, in-house auditors, are appointed by the company and will be on the company's accounts team. They will invest their time in the result of the company’s financial audit. This involvement might affect them in one way or another. |
The external auditor is someone who was hired by the company to do auditing and handle all the firm's financial issues. |
What do Auditors in Dubai do?
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 socially and environmentally sustainable policies.
Benefits of Hiring Auditors in Dubai
Auditing is a necessary task in every organisation. All the organisations make a book of accounts and audit it with the auditor. Following are some of the advantages of carrying out an audit.
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Locate Errors
The auditor helps to detect errors and identify fraud in filing a financial statement. Once the errors are located, the auditor suggests to the clients a change in the accounting system and improves the internal system of control.
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Maintain Accounts
The auditor checks whether the accounts are correctly maintained or not. Therefore, auditing puts pressure on the company to maintain accounts properly.
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Obtain Loan
Financial institutions provide loans to companies based on audited financial statements. Auditing is mandatory to obtain loans.
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Facilitates Sales of Business
Businesses can determine their prices through auditing. Business people can sell their business based on the valued assets and liabilities.
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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 the help of an audit report.
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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.
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Helps to Prepare Future Plans
If the audited report remains true and correct, it is easy to plan the business.
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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 company's goodwill.
Assessing The Financial Condition Of The Business And Detecting Fraud
It is essential to assess the business's financial condition to determine the company's position. Professional auditors can help you assess your financial condition because, after the assessment, management can make decisions for the future growth of the business.
Sometimes, it is very likely that some fraud may happen in your business, and you are unaware of such malicious activities. Professional auditors can help you detect and prevent any fraud. The auditors analyse the internal controls to detect such fakes and avoid fraud or financial irregularities.
How to Choose an Auditor in Dubai?
Following are some of the points to be kept in mind before choosing an auditor in Dubai:-
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Reputation
The reputation of the auditor should be evident and readily apparent to you. The auditor or the firm to which he belongs should be in a stage of rapid growth. Partnering with a reputed auditor helps the firm to establish standards for assessment and audit practices.
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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 in the industry goals.
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Transparency
Compatibility between the company and the auditor matters the most in auditing. It is essential to choose an auditor who understands the company's requirements. An auditor is to be friendly, responsive and honest.
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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 analyse the accounts of an organisation. 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 organisation. For this reason, the service of a professional auditor is necessary.
How Does JAXA Help You?
JAXA Chartered Accountants is a reputed audit firm in Dubai. 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 specialised knowledge and long-term experience. Please contact us for hassle-free service; we are glad to assist you!
