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.
The audit of a particular product to determine if the regulations of the specific sector are followed.
It comprises examining the various methods to increase the efficiency and efficacy of the particular business and deciding which way will be more effective.
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 firstname.lastname@example.org. . We will be delighted to be of service to you.
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!