Statutory Audit Services in UAE

There are three audit types available to a business. First, a statutory Audit is a kind of audit mandated by the law of the jurisdiction of the statutes of the place. This audit will help the government ensure all the information about the company's financial status is correct.

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Here are some of the questions explained as to what statutory Audit is and how it can help in increasing the profitability of a business.

What is a Statutory Audit?

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. This type of Audit is enforced by the statutes of law or is mandated by the law.

This type of Audit is usually done to help the public and all the findings are made public in the end. This helps the general public and the other investor of the company to make informed decisions regarding investments in the company. A Statutory audit 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 differenceDifferenceegulatory Audit, statutory, and performance audits.

Regulatory Audit	The audit of a particular product to determine if the regulations of the specific sector are followed.
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.
Statutory audit	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.

So, for example, a regulatory audit will tell us about the product, whereas a performance audit will tell us about a process. Still, the statutory audit will allow us to understand the entire organization.

Who can perform a Statutory Audit?

A statutory audit can be conducted by any business which fulfils particular prerequisites mentioned by the auditing authority. The management can also conduct a statutory Audit if it has been deemed mandatory by any authority or is mandated by a statute.

The primary purpose of a statutory audit is to examine if the particular organization provides a piece of complete and fair information about its finances. A statutory audit determines what the financial position of the business is and that there is no illegal or wrong activity being conducted in the business. It can be performed by any company which fulfils the required statutes or fulfils a condition.

What are the Statutory Audit Requirements?

A statutory Audit is a legal, 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.

JAXA Statutory Audit Services in Dubai, 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.

If you haven’t appointed a Statutory Auditor and currently searching the market, you can call Jaxa Auditors at 971 4 220 7355 or email us at jaxa@jaxaauditors.com. . We will be delighted to be of service to you.

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 best audit services in and around Dubai. 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!

Avail best quality Auditing and Accounting services from JAXA

The expert will help to tackle business issues by following proper Accounting and Auditing guidelines will also assist you to scale up your business. JAXA also provides various other services such as Tax Services, Payroll Services, Cash flow forecasting and many more.

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Advantages of Statutory Audit Services in UAE

Authentic Business Records

Auditors who examine all the financial reports provide authenticity to the business records. It will also mean that it will better the organization's credibility, which will, in turn, increase the business's goodwill.

Increases Productivity

As all the business reports will be inspected, it will help the management to increase the organization's productivity and provide a more significant benefit to its investors.

Improves Efficacy of Management

It will also help in a better understanding of the business activities and also improves the efficacy of the internal management system.

Less Business Fraud

It will lessen the business's fraud and increase the confidence of the investors and the government in the organization.

What we provide

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

Process

Understand the Operating Environment

Auditor checks if the Auditing guidelines are being followed.

Understand Controls and Procedures

The past audit reports are evaluated

Test Account banalnce and Details

All the Account, Bank and Insurance balances are checked to ensure the report is error-free.

FAQs

Which Type of Audit is a Statutory Audit?

A statutory audit is a part of the external audit. However, a practicing Chartered Accountant performs it without a relationship with the company being audited.

What are the Statutory Differences Audit and a non-Statutory Audit?

A statutory Audit is governed by law or a regulatory body; a non-statutory audit is not required by law and is done voluntarily.

What is the Difference Between Statutory Audit and Tax Audit?

A statutory Audit is made by order of the law; a tax audit is a conditional audit under the regulations of the Income Tax Act.

What is the Purpose of a Statutory Audit?

A statutory audit determines whether an organization presents a fair and accurate record of its financial position to the general population.

Who Needs Statutory Audit?

All companies in the UAE, irrespective of their nature of business and sales, should assign Statutory Auditors.

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