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The setting up of a company is only a mark which represents the start of your long and arduous journey. To be able to sustain the company in this ever-changing business environment is one of the main tasks which the owner needs to perform. To be able to suggest some improvement in the working of the company you should know the present condition of the company in the market. One of the most significant techniques of getting to know the current financial situation of a company is by conducting an audit of the company.
There are different types of Audits that a company can conduct and each of these audits have a unique feature. The various kinds of audit services which can be availed by a company are:
- Company Liquidation Services
- Due Diligence Audit Services
- External Audit Services
- Fraud Investigation Audit Services
- Internal Audit Services
- Regulatory Compliance Services
- Risk Management Services
- Statutory Audit Services
All the above services have some unique feature and focus on a particular aspect of the audit of a company. In this blog, we will focus on the meaning of statutory audit and how the emirate auditors can help in conducting this audit.
Statutory Audit: Meaning
A legislative audit is an audit of the financial books of the company to gauge the financial position of the company and its current position in the market. The government have understood how vital the transparency of the commercial information of a company is for the investors. Keeping this in mind, they require companies to perform statutory audits at fixed duration so that the investors can make an informed decision of investing in the company.
In the United Arab Emirates, all the government organizations must have all their books of accounts audited by regulated statutory auditors. The decision of choosing the statutory auditors or the relevant audit firm in the Annual General Meeting (AGM) of the company.
How can Emirates Auditors assist in Statutory Audit?
Statutory audit is an audit which has been mandated by the government. This type of inspection has to be conducted at fixed durations. The various advantages of holding a Statutory audit are given below:
Add value to the Organization Being Audited
The audit firm will understand the working of the business and will enhance the value of the market by providing them with current financial reports and providing them with various alternatives on how to tackle any business problem. The auditor will also mention possible solutions to the company problem, which can be chosen by the management of the company according to the requirement of the company.
Enhances a Sense of Confidence
The Auditing Firm will prepare various financial reports which will provide all the required financial information of a company. As the investor will be able to obtain all the financial news, he will be able to make an informed and calculated decision about his investments in the company. This transparency of the company will instil a sense of confidence in the investor.
Provides Decision-Making Opportunities
Knowing about the current financial picture of the company will allow the investor to formulate plans and strategies for the future and also increase their profits. The auditing will also be helpful to the companies as they can understand which process is redundant and what are the better alternatives.
Provide Customized Solutions
Every business organization faces a different type of problem which is addressed by the auditing firm. The auditor will understand how the organization functions and accordingly provide a solution which will be customized according to the requirements of the company.
Provide a Different Perspective
Sometimes all you require to solve a problem is to see the problem with someone else’s eyes. The audit firm will assess the entire company objectively so that the report will be better able to justify all the various decisions that are made.
Figure out the Potential Threats
The Emirates Auditors will conduct a risk analysis and will find out all the potential threats that the company will have to face shortly. Knowing all the dangers will provide enough time to understand and combat the threat.
- Ensuring Compliance
The auditors will make sure that the company is adhering to the rules and regulations as stipulated by the relevant authority.
These are the various benefits that a business can avail by hiring auditors in the UAE. Some of the accounting firms will also provide multiple other services that will help the business to more efficient and productive. If you are searching for such auditing service, do have a look at the services provided by JAXA Chartered Accountants. They also have a range of services such as vat and tax calculation, accounting services etc. which will allow your company to achieve greatness. To know all about the various services provided by JAXA do contact us, we will be happy to help.