What is the Statutory Audit/External Audit?
An external audit or statutory audit is an independent examination of financial statements of a company, conducted by an external auditor to give his opinion on whether the financial statements represent the true and fair view of its state of affairs and profitability or not.
The external audit is different from internal audit in the sense that the stakeholders of the company appoint an external auditor, whereas the company management appoints an internal auditor.
Purpose of External Audit
- The primary purpose of conducting external audit service in UAE is to present whether the financial statements provided by the company are ‘true and fair’ or not. We perform the audit without being biased. Therefore, we present the stakeholders with the exact position of the company.
- The external audit ensures that the financial statements presented are complete in all material aspects and comply with the financial reporting framework. Auditors make a critical examination of the accounting records and internal controls and apply auditing procedures to satisfy themselves as to the correctness and accuracy thereof.
Our External Audit Methodology:
- Understanding of the client audit environment
- Understanding of business cycles and processes
- Identification and study of internal controls
- Controls risk assessment
- Detection risk assessment
- Application of analytical audit procedures
- Application of substantive audit procedures
- Documentation and issuance of the draft audit report
- Management represenation
- Finalization of the draft audit report
- Issuance of the external audit report
Key differentiators
We make sure to follow all external audit principles to deliver the work with optimum accuracy. Further, we take care of conducting the tasks in a highly professional and ethical way.
Integrity
Our auditors perform the audit process honestly, conducting each task precisely and diligently. We impartially perform the external audit, taking care of the legal requirements.
Confidentiality
We handle your confidential information and sensitive data with proper care. Our auditors exercise discretion for keeping the information safe, which they acquire while performing the audit. We are fully compliant with ISO/IEC 27001:2013 standards for information security.
Fair Presentation
Our company is obliged to present the audit report exactly, reflecting our audit activities. The conclusion is always based on our audit findings. We strive to make communication truthful, timely, clear, and accurate.
Due Professional Care
Our proficient auditors always perform tasks with due professional care. They are familiar with the importance of the tasks they undertake. An essential factor they take into consideration while performing the tasks with due care is making the reasoned judgment irrespective of all situations.
Independence
We know that the audit conducted should be impartial and uninfluenced. Our auditors conduct the audit independently, drawing conclusions on the basis of audit evidence only.
Audit Evidence
Our auditors follow the compliance procedure for collecting the audit evidence before getting started with the audit procedure. By the use of substantive procedures, our external auditors collect evidence associated with the accuracy, validity, and completeness of the data.
Skills and Competence
Our team is competent, skilled, and well-trained in the field of external audit services in Dubai. They own prior experience of external auditing and remain updated with the developments taking place in the field of auditing, legal, and accounting fields.
External Audit Report
We prepare the audit report where our auditors provide their opinion stating whether the entity’s financial statements are true and fair.
Our audit report follows the auditing standards, and due care is taken in the preparation of the same.
Why N R Doshi and Partners?
N R Doshi and Partners is a reputed external auditing firm based in Dubai. The company owns its growth and reputation due to the faithful and unambiguous service provided to clients. We are approved auditors in Dubai, working in the field of auditing for more than thirty- four years.
During the long span of thirty-four years, we have conducted external audits of several companies from various industries. Besides external audit, we also provide other audit services such as internal audit, forensic audit, information technology audit, compliance audit, and agreed-upon procedure audit.
Companies can also reach us out for accounting, VAT, company formation, human resources, and management consultancy related requirements.
FAQs: External Audit Services
What will happen if an entity doesn’t perform external audit?
According to the Commercial Companies Law of UAE, the statutory audit report is mandatory for all the companies functioning in the mainland.
How should I prepare for an external audit?
You should keep your financial records accurate and up to date. It would help if you verified that you have documentary evidence for all the transactions. You should reconcile your accounts to identify and resolve items well before the external auditors arrive. You should insist on your auditors to provide a checklist of items you should be ready with before they come for external auditing.
You should also identify a place where your auditors have easy access to your staff and the required information. Further, you will be better off if you identify key people from each department to coordinate the external audit. Finally, set an audit date that is mutually convenient to you and the auditor.
What is the significant difference between VAT audit and external audit?
In the case of a VAT audit or tax audit, only the tax-related documents are audited. However, in case of an external audit, all the financial records go under the audit process.
We Only Deliver the True Opinion
Because Your Opinion About Us Matters.
