In today’s world, it is essential to understand the financial numbers of the business, and these financial numbers can be obtained by performing an audit of the company. In an audit, the concerned officers inspect the books of accounts, and through the inspection, the various loopholes within the company or the procedure are found out.
Who is a Registered Auditor?
A registered auditor is a firm, group of individuals, or an individual who performs the inspection of the company or business and is registered with the authority in the location. This inspection usually includes the scrutiny of the financial books of the company. Most of the times, can hear the term registered auditor while learning about the various free zone in the United Arab Emirates.
The registered auditor is required to comply with all the rules and regulations as stipulated by the management of the concerned free zone. The certified auditor has to ensure that all the financial records which are prepared by the company represent the correct data, and all the books of accounts are arranged according to the International Financial Reporting Standards (IFRS) or the reporting standards mentioned according to the regulations of the free zone.
Benefits of a Registered Auditor
There are various other functions that a registered auditor is required to perform. These functions are mentioned below:
- The most noteworthy advantage of all is that only when an auditor is registered with the management of the free zone or with the relevant authority, only then can the company established in the free zone can select the particular auditor to conduct the audit for the company.
- It is the responsibility of the registered auditor to mention all the other sources and the total income of the company from different sources in the financial report of the company. This report should also consist of the income which is generated from the various sources which are not covered under the scope of the licenses.
- All the salary expenses of the business must be disclosed in the annual financial report of the company.
- While the preparation of the annual financial account, all the notes of the company should be mentioned appropriately and explained accurately.
- The Auditor should mention the bank balance of all the companies, which should be cross-checked and confirmed by the relevant banks.
- The auditor should mention the articles which will help in the cross-checking of the financial period and the share capital of the business.
These are some of the benefits that a registered auditor will provide to a business.
Why should you conduct an Audit of your Company?
An audit of the company must be performed both internally and externally. The main reasons why you should conduct an audit are given below:
·Provide a complete overview
The audit of the company will provide a comprehensive and detailed report of the financial condition of the company. Such a statement will allow the management of the company to understand where to put in more resources and where to hold back the resources of the company.
·Be More Accountable
After an audit of the company, all the decisions of the management of the company will be clear. If there is any problem, the management will be held accountable.
·Boost the Ratings
An audit report will provide the necessary information which will allow the management to form a strategy for the future. In this manner, the audit report will help in boosting the credit rating and the creditworthiness of the business.
As the audit report will provide all the necessary information for a person to decide if they should invest in the business. All the investor should invest in a company only after going through the audit report.
There are many more benefits of which can be availed by hiring the services of a Registered Auditor and conducting the audit of a company. Conducting an audit will be very beneficial for a company, especially a start-up. If you are looking for services linked to Audit or Accounting in the United Arab Emirates, you must look into the services provided by JAXA Chartered Accountants. JAXA is a Chartered Accountant Firm that will take care of any financial issue which is being faced by your business. For more specifics, contact us, we will be glad to help you.