Dubai has seen tremendous growth in terms of businesses coming into the country. It is considered one of the most prominent business destinations and has been growing continuously. It has been paving a path for multiple businesses coming to the country worldwide and is headed towards becoming a platform for various companies. There are many different rules and regulations needed to be followed by a business in the country. Conducting audit services of companies registered in Dubai is one such mandate from the side of the government.
The word ‘Audit,’ if looked up in a dictionary, means to inspect or examine. While conducting business, the entities undergo different ranges of business transactions every day. A lot depends upon the nature and size of the business and the activity which has been undertaken. A Financial Audit refers to examining a company’s accounts to identify whether all the business transactions conducted are ethical or not. In the earlier days auditing focused only on business numbers and cross-checking of the business insights. In the present day, the concept of audit and assurance has widened its scope in both internal and external matters. Now, it’s not only limited to the numbers generated by a business activity but also plays a vital part in deciding the future of the business.
In this article, we will provide you with all the necessary details regarding a business audit and choose the best auditors in Dubai for the better performance of your company.
Why are Approved Auditors in UAE necessary for a Company?
Auditing deals with the inspection of all the business transactions of the company. These can pertain to internal matters as well as the external issues of the business. Therefore, approved auditors can help a company be more profitable and efficient, which will ensure the existence and the increasing profitability of the company in the long run.
Now, auditing is considered a necessary business function because of the following reasons:
With the growth of the business, it becomes essential for the management to keep track of who is accountable for which job within the industry. This helps the stakeholders to make better business decisions concerning the company. In addition, having an auditor will help attach the accountability of various functions to the respective and relevant departments of the business.
- Credibility and Reliability
Conducting the audit services helps the tax officers, financial institutions, and the company management rely on the company's business activities and makes them ‘lend worthy,’ meaning that the business has more goodwill and the various financial institutions are always looking forward to giving out loans to them. More credibility will also improve the credit situation and help acquire more funds for the company.
- Providing a Comprehensive Review of the Company
One of the best things that auditing does is provide a comprehensive report of the business's health. This report comprises a review of all the business activities, which allows for a better understanding of these activities and will also make it easier to understand the bigger picture. This will also help in proper business planning, which will lead to the growth of the business.
- Boosting the Credit Rating of the Business
If a company conducts an audit, then the company will be well aware of all the business activities happening on the premises. This means that even if there is a fraudulent activity occurring, the management will catch it quickly. Keeping this in mind, the various financial entities have confidence in such businesses, which boosts their credit ratings allowing the company to gather more funds for the smooth functioning of the business activities.
We can see that the points mentioned above highlight that auditing is one of the strongest pillars of a business, and the management must conduct a financial audit of the company from time to time.
Essential Points before Selecting an Auditor
As we have seen that auditing is one of the confidential and most crucial functions that a company needs to deal with, one should also be careful before outsourcing the auditing services to a third party. The management of the company needs to do due diligence before any transference of data. Below mentioned are a few points that a company needs to seek before selecting an approved auditor in the UAE:
- Evaluate the Expertise
Since you will be outsourcing the company details to a third party, it becomes a mandate for you to evaluate the strength and weaknesses of your auditor. Choosing the right auditor relieves more than half of the tension of the management. So, it becomes an essential part to know the pros and cons of your auditor before handing in the company information.
- Ability to adapt to different situations
Your auditor needs to understand your business thoroughly and so that it can adapt to your organizational culture. Several audit firms in the UAE provide a diverse range of services, but they should match according to the business's needs and requirements.
- Industry Experience
Experience of the auditing firm in the field of auditing matters a lot. A company well versed in the field of auditing will be able to handle the auditing function and make audit reports far better than the one possessing a smaller number of experiences in auditing.
- Clear Communication
Transparency communication in business matters the most. During the audit process, transparency is the essential part. Therefore, it becomes necessary to choose an auditor that will understand your company's requirements and maintain transparency during the audit process.
Financial statement handling is a tedious job that involves a lot of complexities. Therefore, it is always advisable to outsource the audit process to an experienced audit company well-versed with the rules and regulations and helps you provide concrete audit reports.
Are you planning to outsource your audit process? Wondering whom to choose? Don’t worry. JAXA Chartered Accountants can help you in this matter.
JAXA is a veteran audit firm in Dubai, working with multiple clients helping them to sort their audit services. Our audit experts will take care of the audit processes and help you prepare your audit reports in a hassle-free way. For more information about the auditing services or the various services JAXA Chartered Accountants provides, do contact us today – we’d be happy to assist.