External audit services examine all of a company's financial books and can be considered the most crucial audit for a company. It is all about giving an opinion on the Financial Statements of an entity. The concerns raised by the auditor in the opinion section of the report should be answered by the company management to the shareholders during the meeting.
- Roles of an External Auditor
- Advantages of External Audit
- External Audit Procedure
- Documents Required for External Audit
- Why Hire External Auditors in Dubai
- Why Jaxa External Service in Dubai?
This type of audit is usually conducted by court order and performed by a third party without connection to the audited organisation. Thus, the external audit service can be considered fairer and just and with no bias. The company management appoints an external auditor. For these reasons, hiring external audit services in Dubai is very important.
Roles of an External Auditor
- An external auditor assesses the organisation of a company for compliance with regulations. Regulators trust company disclosures attested by external auditors to be true.
- An external auditor gives shareholders confidence knowing that the company operates within their best interests.
- An external auditor can act to resolve present time issues and also the forthcoming ones, if any, and confirm the company's financial claims to be correct and accurate.
- An external auditor evaluates the financial position of a company and issues a report, opinion, and recommendation about findings.
Advantages of External Audit
We are already aware that external audits are unbiased. Apart from this, other advantages can be gained when you conduct an external audit for your company. Here are a number of them:
- External audit provides credibility to the company because of the complete and comprehensive audit report.
- Ensures that all the requirements for compliance standards imposed by the government are adhered to.
- The report can be considered more impartial than the internal audit.
- External audit being conducted by a third party not concerning the business can provide a different perspective on managing the business.
- Helps curb wastage by assisting the management in the prudent and proper utilisation of resources.
- Increase investor confidence and also attracts more investors.
- Helps understand a business's workings and prepare it for the future.
External Audit Procedure
Here is how the typical audit procedure goes:
Step 1: Appointment of the Auditor
The person to be appointed should be independent, in all respects, of the company's affairs. The Audit Committee will appoint the individual or the team depending on several factors. The Board of Directors and shareholders approve the appointment.
Step 2: Confirmation by the Auditor
After the appointment, the auditor ensures that he is working independently; and then issues a confirmation to the company.
Step 3: Audit Engagement
A contract is prepared between the auditor and the company. Some stipulations in the contract include the audit's objectives, the auditor's independence, the audit fees to be paid, the responsibilities of each party, and the scope of work covered, among others.
Step 4: Audit Planning and Execution
This is the start of the external auditor's tasks. An audit plan is prepared first, containing the deadlines for each area and the completion deadline overall. Then the auditor prepares the program for the audit execution.
Step 5: Collection of Evidence
This convincing evidence is necessary to support the auditor's opinion when submitting his Audit Report.
Step 6: The Audit Report
This is the last step in the external audit process: the signing of the Audit Report. The report also contains the auditor's opinion about the results of his audit.
Documents Required for External Audit
These documents should be made ready, even before the external auditor starts working for an easy and quick ending of the audit process.
- List of bank accounts used by the company
- Payroll report
- List of all the company transactions made
- The general ledger
- Trial balance of the company
- Copies of all legal documents, such as Licenses, Memorandum and Article of Association, Certificate of Incorporation, Share Certificates, Tax Registration Certificate, and many others.
- Confirmations from customers, banks, suppliers
- Schedules of Asset Registers, Prepayments, Accruals, etc.
- Loan Documents.
Why Hire External Auditors in Dubai
When you have a highly qualified external auditor working for your company, it can help avoid problems. Daily accounting practices easily hide abuse, fraud, and non-compliance with rules and regulations. Here are some reasons you should hire and partner with an external auditor in Dubai.
Your Financial Statements are sure to have more weight and can be trusted as accurate when vetted by an external auditor in Dubai.
- Compliance with government regulations
An external auditor can identify areas where your accounting best practices do not meet the specified standard government regulations.
- Process Improvement
There will always be areas where you could improve your internal control, and external auditors can help you find these areas.
- Fraud prevention External auditors will examine your bookkeeping records, and their findings and opinions will not be based on personal relationships.
Why Jaxa External Service in Dubai?
Businesses in Dubai cannot avoid hiring external auditors to examine their financial books. Jaxa Auditors offers you top external audit services to ensure your business operation runs smoothly and profitably. We have a long-standing history in auditing services; we have become the most sought-after auditing firm by companies from all sectors and industries.
Other reasons why you should consider our offer include the following:
- Jaxa Auditors have only the best auditors on board.
- Our auditing experience is crucial in the Finance sector.
- Our rates are affordable and reasonable, even for small businesses.
- We have many existing clients based in and around UAE.
So, if you are looking for the best external auditor's services in Dubai, you need not look too far. Call us at 971 4 2207355 or email us at firstname.lastname@example.org and let's talk and we'll help you. So keep your questions ready, and we will answer them all for you. Our customer service professionals are waiting for your phone call with eagerness and complete sincerity.