Dubai has seen tremendous growth in terms of businesses coming into the country. It is considered as one of the biggest business destinations and has been growing continuously. It has been paving a path for multiple businesses which are coming to the country from all over the world and is headed towards becoming a platform for various businesses. There are many different rules and regulations which are 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 and a lot depends upon the nature and size of the business as well as the activity which has been undertaken. A Financial Audit refers to an examination of a company’s accounts so as 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 which are generated by a business activity but it also plays a key 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 how you can choose the best auditor for the better performance of your company.
Why Approved Auditor in UAE are necessary for a Company?
Auditing deals with the inspection of all the business transactions of the company. These can pertain to the internal matters as well as the external matters of the business. Approved auditors can help a company to be more profitable and efficient which will in the long run ensure the existence and the increasing profitability of the company.
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 business. This helps the stakeholders to make better business decisions with regards to the company. 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 to rely on the business activities of the company and also 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 of a business and will also help to acquire more funds for the business.
- Providing a Comprehensive Review of the Company
One of the best things that auditing does is provide an overall report of the health of the business. This report comprises a review of all the activities of the business, 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 happening, 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 business to gather more funds for the smooth functioning of the business activities.
We can see that the above-mentioned points highlight the fact 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.
Important Points before Selecting an Auditor
As we have seen that auditing is one of the confidential and most important function 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 weakness of your auditor. Choosing the right auditor relieves more than half of the tension of the management. So, it becomes 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. There are a number of audit firms in the UAE which provides a diverse range of services, but it should match according to the needs and requirements of the business.
- 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 holds the most important part. Therefore, it becomes important to choose an auditor that will understand your company requirements and maintain transparency during the audit process.
Financial statements handling is a tedious job that involves a lot of complexities. It is always advisable to outsource the audit process to an experienced audit company that is well-versed with the rules and regulations and help 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, which has been 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 provided by JAXA Chartered Accountants, do contact us today – we’d be happy to assist.