The main aim of any business organization is to make a profit for them as well as the shareholders of the company. This aim can be achieved by availing proper Accounting and Auditing services. Auditing plays a huge role in the development of a business. Not only it will provide information about the internal processes of the company, but it will also help in the proper allocation of resources. Here are some of the advantages of performing an Audit of the company:
- Maintain Consistency in Reports
- Determine the Profit or Loss of the Company
- Helps in the allocation of resources in the Company
- Plays a significant role in determining the taxes to be paid
- Helps in planning the future of the Company
- Assists in the Detection of Fraud
- Increases the Goodwill of the Company
Due to the various benefits mentioned above, performing an audit for the company is essential. The management should take special care to avail of the services of auditors whom they can trust, especially in the free zones. This is where Approved Auditors will come into the picture.
Who is an Approved Auditor?
An approved auditor is an auditor or an auditing firm that will scrutinize all the financial accounts of the company and will also help gather the information that will be of great use in deciding a future trend for the business. After checking all the financial books, the auditor needs to prepare the audit report, which will contain all the necessary information which will help in deciding a future trend of the business.
Not every auditor can conduct its activities in the free zones of the UAE. There is not much difference between an auditor and an approved auditor. An approved auditor is an auditor who van conducts its activities in the free zone of the United Arab Emirates. This means that if you have set up your business in one of the various free zones in the UAE, you must check if the auditor which you are choosing must be an approved auditor.
Need for Approved Auditors
●Can Assist you in Free Zone
An approved auditor can not only provide its services in the mainland but can also assist you in the incorporation of the business in a free zone. For this, the auditor must be registered in a particular free zone. Not all auditors can serve a company in the free zone. In this way, an approved auditor has the upper hand on the ordinary auditor.
●Provide Comprehensive Information about the Financial Status of the Company
After conducting an audit of the company, the auditor needs to prepare an audit report. This audit report will comprise of all the financial metrics of the company. By conducting a quick study of this report, it is possible for the management of the company to understand the condition of the business and also helps in planning the future of the company.
●Reduce Wastage of the Resources of the Company
By adequately studying the audit report, the management of ta company can understand where it needs to put in more resources and where can it conduct cutbacks. This will help in saving the support of the company and make it more profitable.
●Check for Compliance
Here are many laws and regulations which a company needs to follow or it may have to shut the company down. Conducting an audit from time to time will help the management in complying with the various rules and regulations of the jurisdiction.
●Provide a Different Perspective
An audit is usually conducted by a person who has no affiliations to the business which is being audited. This will help in getting a different perspective on the problem which is being faced by the company.
●Attract Potential Investors
As the audit report will be generated from time to time, it will help the company to provide information to potential investors. This transparency will allow investors to make informed decisions and increase the chances of their profitability.
It is essential to avail the services of an auditor, and if the auditor is an approved auditor, you can rest assured that the auditor will take good care of the financial health of the company. If you are looking for approved auditors to take care of the financial health of your business, then you must have a look at the services provided by JAXA Chartered Accountants. The experts at JAXA will provide comprehensive and timely advice which will help enhance the profitability of the company. For more details, Contact Us. We will be happy to help.