If you have ever been in an accounting field, the word ‘auditing’ might not seem very strange to you. But what is auditing?
In simple words, Auditing is simply the double-checking and verification of books of accounts and recorded financial data prepared by the accountant in an organization. It is done against the source documents from which they have been prepared, and also examines whether the organization is working according to the industry standards or any other stated purpose.
In other words, it is an inspection of the company’s financial data to assure the relevant stakeholders that the company’s financial statements and reported data are accurate and transparent. Auditing can be done in a variety of ways, including physical stock count, getting information from other sources, examining and matching the reported profits, checking reconciliation statements, and much more.
Best Audit Firm in Sharjah
If you run an honest and reputable organization in Sharjah, one of your top concerns would be to find the most suitable audit firm in the city. Deciding on the selection of an audit firm should be done carefully. Perhaps one of the best audit firms, with a good reputation and services in Sharjah, is JAXA.
The firm, JAXA, is known to provide quality accounting and auditing services for years. Not only will they help new enterprises and startups in all aspects such as growth and development, but they also make sure that the organization follows standard accounting regulations of UAE, which will relieve businesses of any legal issues.
Types of Audit Services Offered
JAXA provides a range of audit services suitable for small and large organizations. The services include:
It refers to the service of evaluating the internal position and control of the business. Internal audit assures the business about their risk management strategies, their corporate practices and methods, and their internal control processes that they are operating effectively. It adds credibility to financial reports that are sent to the shareholders and management.
This refers to the process in which the financial records of the business are examined to verify the transparency, reliability, and accuracy of financial data. An external audit is done by a third party that does not have anything to do with the organization. It helps discover any frauds, misstatements, and miscalculations. External auditors report the progress of the business to the management which assists them to make future decisions and strategies.
This type of audit is mandatory by law and communicates the financial information to all stakeholders including investors, shareholders, the general public, etc. The purpose of this audit is to assure the government and other stakeholders that all representation of financial data is done accurately and honestly.
This type of audit refers to the examining and inspection of the company records and determines the financial standing of the business. It is useful for the management to modify any problems or course of the business. This information is beneficial when merging or acquiring new businesses so that the company’s financial standing is clear and not over or underestimated
Benefits of Hiring Audit Firms in Sharjah
Auditing financial data is an expensive process indeed. So, why do businesses hire audit firms in Sharjah? Well, Audit firms determine your business’ reputation and reliability in the market. Stakeholders will be interested in firms with successful audit reports, as they will be assured of the business’ performance and transparency.
In addition, pressure groups such as the government will be assured of the business’ operations. Moreover, hiring audit firms gives the business access to specialized teams and individuals who might help the business in various aspects such as tax practices, profit and loss analysis, fraud prevention, etc. Overall, it helps maintain the confidence of the stakeholders.
List of Financial Statements Used in Auditing
This is a detailed statement about the profit and loss analysis of the businesses. It contains information related to the cost of goods, revenue generated, revenue from other sources, expenses related to distribution, administration, and finance. Thus, it provides a clear view of the profitability of the business.
Statement of Financial Position
This refers to a detailed statement about the financial standing of the business. So, it may contain information on all the assets, non-current and current liabilities, and equity or capital of the business. It helps determine the net worth of the business
This statement contains information about all the inflows and outflows of cash in a specific period.
Why Hire JAXA for Auditing Services in Sharjah?
JAXA chartered accountants is an ISO 9001-2015 certified firm with qualified CAs, auditors, and specialist teams. It has been recognized internationally as an approved auditor in all free zones of UAE and has provided services to more than 1500 clients. JAXA is also affiliated with TIAG, which is considered the leader in the international market of technology, strategic, and transformational solutions.
Practices throughout the UAE and a reliable, flexible, and innovative team of accountants and auditors have made JAXA the best audit firm choice for any business in the UAE.