5 minutes
If you have ever been in the accounting field, the word ‘auditing’ might not seem very strange. But what is auditing?
In simple words, Auditing is simply the double-checking and verifying 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 works 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 its financial statements and reported data are accurate and transparent. Auditing can be done in various ways, including physical stock count, getting information from other sources, examining and matching the reported profits, checking bank 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, has been 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 will 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:
-
Internal Audit
It refers to evaluating the internal position and control of the business. Internal audit assures the business about their risk management strategies, corporate practices and methods, and internal control processes that they are operating effectively. It adds credibility to financial reports sent to the shareholders and management.
-
External Audit
This refers to the process in which the business's financial records are examined to verify the transparency, reliability, and accuracy of financial data. A third party does an external audit with nothing 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 in making future decisions and strategies.
-
Statuary Audit
This type of audit is mandatory by law and communicates the financial information to all stakeholders, including investors, shareholders, the general public, etc. This audit assures the government and other stakeholders that all financial data representation is done accurately and honestly.
-
Due Diligence audit services
This type of audit refers to the examination and inspection of the company records and determines the business's financial standing. 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? 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
-
Income Statement
This is a detailed statement about the profit and loss analysis of the businesses. It contains information about the cost of goods, revenue generated, revenue from other sources, and 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
-
Cash Flow Statements
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 UAE free zones and has provided services to more than 1500 clients. JAXA is also affiliated with TIAG, the leader in technology, strategic, and transformational solutions in the international market.
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.
Read more:
What to look for in top Audit Firms in UAE?
How to Select the Best Audit Firm in Dubai?
8 Factors to Consider Before Hiring an Audit Firm in Dubai
4 Reasons to avail Audit Services from the top audit firms in the UAE
