The small and medium organizations are referred to as the backbone of a nation. Taking this fact into consideration, the United Arab Emirates encourage the small and medium businesses to flourish in their relevant industry. Absolute essentials need to be taken care at the initial stage of a small organization so that it can grow and expand gradually. However, the business owners should keep in mind that certain essentials should never be neglected, and one such core step is Financial Audit. If you are a business owner of a start-up or is planning to initiate one in Dubai, you need to take care of the essentials at every step. Each information and company records turn out to be necessary. This article will help you to understand regarding the initiation of financial audit for your organization.
1.Validation of the Company Documents
The company documents play a vital role when it comes to financial audit. Every expense and income, even the petty costs need to be calculated. In general, while carrying out the audit process, a financial auditor does an in-depth examination of the financial records, which is carried out through the electronic process. A small organization may not have many documents, but still, an auditor scrutinizes the papers to get better clarity and understand the accuracy of the documents, and finally analyze the company status.
2.Computation of Tangible Assets
The assets held by an organization gets audited by the auditor. An inventory list gets prepared by each organization which highlights the assets available. An auditor compares the list along with the physical assets present in the organization. The list also talks about the price and age of the assets available.
3.Review of the Minutes of Meetings
An auditor reviews the meetings of each meeting being conducted in the company to figure out the precise details regarding the business. While conducting any meetings, it is to be taken care that the minutes of the meetings get recorded, while it will help your company during the audit process.
4.Scrutiny of Accounting Records
The accounting and bookkeeping records contribute highly during a financial audit process. The income and expenses made by the company on relevant aspects get recorded in the book of accounts. While carrying the audit process, an auditor scrutinizes each transaction. Thus, it becomes a necessity for the business owner to make sure that the book of accounts is error-free and are adequately maintained.
5.An Initiative of Making Enquiry
An auditor not only deals with the audit process dealing with one department. An in-depth enquiry is carried out by having a word with the employees of the core and other relevant departments and then the information is considered while drafting the audit report.
An auditor also keeps a close look at the activities performed by each employee, which helps them to understand the workings of the organization in a better way. Being the owner of the business, it becomes your responsibility to keep a check that the company tasks are streamlined accordingly to perform smooth functioning of the business.
The aforementioned points depict the complete picture of how the financial audit process is carried in a small organization. It becomes utmost important that the entire financial audit process is carried out professionally and is done effectively because it contributes significantly to the growth of your business. You need to make sure that you are free-frank with your financial auditor to gain more insights while the audit process is getting carried out. Are you looking out for a helping hand? Well, your guide is just below.
JAXA Chartered Accounts| Your Guide
Since its inception, JAXA has been helping multiple clients across the UAE to solve and streamline their business processes related to Accounting, VAT, Tax, Audit. Our audit experts are well-aware of the audit laws in the UAE, and provides customized solutions which make us stand as one of the top ten audit consultants in the UAE. To have a word with our experts, do contact us-we’d be glad to assist.