The Financial Health of a Company and the Financial Statement Audit in UAE

The companies incorporated in the Emirates must undergo a Financial Statement Audit in the UAE to ensure that the management has an error-free financial statement. Hiring a certified internal auditor will help you sound financially strong and creditworthy. 

Before hiring an auditor or planning to prepare a financial statement audit, it is important to know the types of audit you might need to perform;

• Financial Audit

• Investigative Audit

• Operation Audit

• Tax Audit

Types of Statements Under the Financial Statement Audit in Dubai & UAE

The financial health of the company is maintained by doing better financial planning and auditing the types of statements listed below;

• Auditing the Statement of Income

The state of income shows the overall performance of any company in all the phases. For instance, a company’s revenues are based on profit and expenses.

Here the role of the auditor is to verify the accuracy of the transactions by cross-checking the cash book and the accounts book. 

Also, read about our Audit and Assurance Services in UAE. 

• Balance Sheet

The company’s financial statement is known through the balance sheet. This is divided into three categories;

1. Company’s Assets

2. Company’s Liabilities

3. Shareholders Equity

Note: Everything should be with a date.

The job of the auditor here in an auditing firm in Dubai is to compare the assets and liabilities and the accuracy of the figures mentioned. In some cases, a person is called an analyst, who looks at the liabilities and equity together.

• Finance the Company holds as per its UAE Financial Statement

In simple words, this statement through light directly on the cash the company has. This will help in clearing and meeting the supplier's obligations. This statement also shows the company’s cash transactions.

The auditor audits the cash flow, and he matches the cash flow statement with the company’s bank account statement to check the accuracy between both statements.

• An Opinion Letter from the Auditor

After reviewing and completing the auditing process, the auditor has to give an opinion letter that includes the accuracy of the financial statements of the company. He/She must mention the completion of the review and the process undertaken by them while reviewing in the opinion letter.

End Note - Choose Jaxa Chartered Accountants in Dubai

By now, you might have a better understanding of financial planning and the financial health of the company if you are someone who wants to do a business setup in Dubai. It’s important for you to have a better understanding of financial planning. Contact Jaxa Chartered Accountants and take a back seat; the rest is on us.