It is not an easy matter for any business to conduct any kind of Audit. There are many steps and prerequisites which the management should keep in mind before conducting the audits. Also, there are many different types of Audit to choose from, and Statutory Audit is one of them. It is an audit in which is legally required to be conducted by a business which is enforced by the statutes of law or is mandated by the law. All the financial documents of hte company are then analysed and teh compliance for each of report is checked.
This type of Audit is usually done to help the public as all the findings of the audit are made public in the end. This helps the general public and the other investor of the company to make informed decisions regarding investment in the company. A Statutory audit in UAE can be most frequently seen in the public sector of a business. The Statutory Auditors are selected by the shareholders in a general meeting for a duration ranging from 3 years to 5 years.
What is the Difference between a Regulatory Audit, Statutory Audit, and Performance Audit?
We all know that there are different types of Audits, each providing a different result. Here we will discuss the difference between Regulatory Audit, Statutory Audit, and Performance audit.
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Regulatory Audit |
It is the audit of a particular product to determine if the regulations of the specific sector are followed. |
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Performance audit |
It comprises examining the various methods to increase the efficiency and efficacy of the particular business and deciding which way will be more effective. |
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Statutory audit |
It is the review of the business's financial statements, which have been mandated by the law or the statute of a jurisdiction. |
All three different types of audits aim to assist the management by examining the process or procedures. But a significant difference is that out of the three, only a Statutory Audit can be considered a comprehensive and complete audit.
This is because a Regulatory Audit will tell us the details about the product, whereas a Performance Audit will tell us about a process to make the product more effective and efficient, but the Statutory Audit will allow us to understand the financial health of the entire organization.
Who can perform a Statutory Audit?
A statutory audit can be conducted by any business which fulfils particular prerequisites as mentioned by the auditing authority. The management can also conduct a statutory audit if it has been deemed mandatory by any authority or if it is mandated by a statute in the jurisdiction.
The primary purpose of a statutory audit is to examine if the particular organization provides complete and fair information about its finances. It helps in determining the financial position of the business is and also ensures that there is no illegal or wrong activity being conducted in the business whcih can hamper the interest of the stake holders. For conducting the financial audit of a company, there are certain prerquisits which the company needs to fulfill.
What are the Statutory Audit Requirements?
A statutory Audit is an independent examination of the financial records of a company or institution. The role of a statutory auditor is to find out and report whether or not the company’s financial statements are factual and fair.
The new UAE Commercial Companies Law requires every company to appoint licensed auditors who will assess their books of accounts. These auditors should be registered under the UAE Ministry of Economy.
The management of a comapny needs to keep the following documents handy for conducting the Staturoty Audit for a company:
- Bank Statements and Financial Reciepts
- Details of fixed resources of the company
- Trade payables and Revievables
- Information about Credits and Advances
- Details of stock
- Documents related to Dues and Duties
- Management and Selling Costs
These are some of the documents which are required for conducting an audit however there may be extra documents required in certain situations. It will be crucial and time saving if the comapny already has availed proper and reputed Statutory audit services in Dubai.
JAXA Statutory Audit Services in UAE
Jaxa Auditors perform statutory Audit, which is essentially a review of the final statements of the company, including the Profit and Loss Statement and the Balance Sheet. We assist our clients in keeping accurate financial records in doing statutory Audits. Our auditors are licensed and registered with the proper authorities to perform statutory audits.
Why JAXA?
JAXA is a Dubai based financial consultancy firm offering a wide range of services including auditing, accounting, VAT, tax consulting, software consultancy, and management. We have been providing the one of the best audit services in UAE and can definetly assist you in Staturory Audit services in UAE. Our audit team works with you for the well-being of your firm. We adopt up-to-date audit software to analyze and identify any problems and provide the best solutions.
For any statutory audit services, do contact us – we’d be happy to assist!
