A Glance at the Audit Procedure Followed by Audit Firms in Dubai
Just Like Accounting or VAT serves as the strongest pillar to hold an organization. Audit plays a vital role that is just beyond the numbers and statements. An audit helps to analyze the loopholes of business and fixes it. Audit Firms in Dubai evaluates the financial records of a business which helps to boost a company’s growth. An audit is carried out in two ways i.e. Internal audit & External audit. As a company owner, you should have a gist about what is audit and how it can boost the ranking & growth of a business.
This Guide will help you proceed to ahead and understand the audit procedure
Why you Need an Audit?
As most of the companies in UAE are under the mandate of the government for them on yearly basis audit. Audited financial statements are required & mandatory in order for an organization to be considered by the banks, creditors, etc. their request for loans. Investors also look at them in order to be convinced to invest in the said company. Audited financial statements are also asked by authorities based on their discretion.
Audit Procedure in UAE
In UAE, a business entity is expected to go through financial audit under the supervision of Audit Firms in Dubai for accuracy.
Planning
It is the first step when it comes to the implementation of the audit process. An auditor prepares a plan considering a holistic view of the management. While drafting the plan management process, the task performed, etc, are considered. It also includes aspects like analysis of ration, highlighting the loopholes which are needed to be sorted on a mandatory basis.
Financial Audit Test
In the audit process, either it can be an internal or external audit, an auditor tries to understand the different aspects of the business by applying numerous audit test. An auditor also gets exposure to the company’s financial statement and analyses the financial statement to collect factual information.
Account Analysis
An auditor tries to analyze the company’s accounts and matches the same with the audited documents collected in the audit test. The main reason for the comparison is that it states a clear picture behind the changes made in the accounts since the last audit. Account analysis/ It also helps in understanding the next initiative to be carried out.
Preparation of Audit Report
After the completion of the analysis and projection, Auditor moves towards the preparation of the audit report, that includes the complete information of all tasks being performed in the organization. It also includes future projections, the company’s SWOT analysis, that will help the audit firm to convert the weakness into strengths, as well as the threats into opportunities. After the preparation of the report, every department of the organization is informed and signatures are to be taken by the top management.
Closing Meeting
At the end of the audit, Auditors arranges a meeting with the company’s management in order to discuss the said audit that has been conducted/ concluded. The management or the auditor discusses the findings and solutions given by the auditor.