Auditing is a very important part of managing a company. The process of auditing not only helps a business to understand its financial health but also will allow the management to prepare a strategy for the future. Auditing also provides various other benefits to a company such as:
- Helping understand the Financial Health
- Maintaining Compliance
- Preparing for the Future
- Preventing Fraudulent Activates
- Updating the Company Financial Records
There are many other benefits that the management can avail by conducting a financial audit of their company. to know more about the benefits of Audit, read out the blog “How Can Your Business Benefit from Audit Service in Dubai?
All auditors use an Audit Report to compile and present the financial data of the company. The audit report is used as a template that is widely used. The template for an audit report consists of the following seven parts:
- Report Title
- Paragraph of Introduction
- Scope of the Company (Client)
- Executive Summary
- The opinion of the Auditor
- The name of the Auditor
- The Signature of the Auditor
Parts of an Audit Report
The above mentioned seven parts of the audit report are explained below in detail.
1. Report Title
The report title the first thing which the client encounters after the audit report is prepared by the auditor. This means that it should consist of all the necessary information, such as the date of the audit, the name of the client.
2. Paragraph of Introduction
This is the introductory paragraph which mentions when and how the audit of the company was carried out and what were the financial documents which were used in the audit of the company. The introductory paragraph also states that all the financial documents provided by the management of the company and used in the company audit are correct and accurate.
3. Scope of the Company (Client)
All the rules and regulations followed by the auditor during the time of the Financial Audit is mentioned in the paragraph relating the scope of the company. This part help in establishing the veracity of the financial audit.
4. Executive Summary
This part of the audit report mentions and discusses the findings of the auditor. This is the complete summary and findings from the financial audit of the company. One should notice that the auditor can only mention the facts in this part of the audit as the opinions of the auditor are mentioned in the next part of the audit report.
5. The Opinion of the Auditor
This is the part of the audit in which the auditor provides his or her opinion after conducting the Financial Audit. The complete methodology of how the audit is performed is mentioned, and once again, the point is stressed that all the information and the financial statements provided by the management are correct and accurate.
6. The Name of the Auditor
This part of the audit report mentions the name of the auditor, who is in charge of the financial audit. If the auditor is a third-party firm, in such a case, the name of the firm must be mentioned in this part of the audit report.
7. The Signature of the Auditor
This is the part of the audit report in which the auditor (individual or firm) acknowledges that it is responsible for the financial audit of the company and will be held accountable for any result derived during the audit process.
Every audit report follows this template to disclose their findings and also expresses their opinion of what the solution can be. This audit report will help create other financial reports and will also help during the filing of taxes.
Getting an audit done by the reputed auditors can help your business in many ways. If you want to get your company audited in the United Arab Emirates, then you can have a look at the services provided by JAXA Chartered Accountants.
JAXA Chartered Accountants can also help in providing a number of different services that will help your business to propel forward in the market. To know more about the various services offered by JAXA, Contact Us. We will be happy to clarify any query or doubt you have.