The company’s stakeholders will propose appointing a firm to conduct an external auditor.
We confirm the external audit engagement if we are okay with the scope of work. We feel that the company management will not curtail our independence upon accepting the engagement.
Our statutory auditors ask the client to provide the necessary information concerning the company to gain a preliminary understanding. The auditors study the following information in detail.
The company is also advised to maintain books of accounts, verify them & update them while ensuring that supportive evidence is readily available.
Our external auditors prepare an audit plan after undertaking risk assessment and deciding the analytical procedures they wish to apply. They also understand the regulatory requirements applicable to the entity and decide the nature, timing, and extent of audit procedures.
External auditors formulate their audit strategy based on the audit characteristics, reporting objectives, work efforts required, experience, and resource availability.
Finally, they prepare the external audit program and define audit objectives for each area under audit and guidelines for the staff to carry out the audit work. They zero in on the areas requiring detailed checks and test checks. Moreover, based on their evaluation of the internal control framework of the organization, they also decide on special procedures to be applied.
In this stage, the actual audit work starts. Based on the audit execution plan, risks and controls are evaluated. The external auditor is satisfied with whether the internal controls operate as intended. Furthermore, he also looks for evidence supporting the transactions under audit while checking the overall compliance of the accounting records with accounting standards and statutory requirements.
The draft audit report is prepared based on the information gathered and the auditors’ findings. The external audit services report is then checked, finalized, and issued to the client.
Finally, we follow up with the client on the recommendations made in the audit report and verify the corrective measures taken.
It is necessary to conduct an external audit in Dubai to provide the stakeholders with essential information about an entity’s financial position.
An external audit ensures that financial statements conform to the statutory requirements and that necessary disclosures required by the law are adequately made.
Our Statutory auditors also ensure that financial statements are comparable with the prior periods and with similar organizations in terms of format and content. If any events have occurred after the balance sheet date, they are appropriately disclosed, and all unusual transactions are disclosed, making financial statements free from material misstatements. External Auditors also identify any material deviation from generally accepted accounting policies and disclose them suitably in their statutory audit report.
External Audit assures banks and financial institutions and helps secure funds for the company.
We provide unbiased recommendations to help businesses improve in several areas and grow.
Our Statutory auditors evaluate the client’s internal control framework and accounting methods and check if the controls are adequate and operating, accounting policies are consistently followed, and the financial records match the financial statements.
A statutory audit helps organizations strengthen their internal audit function by evaluating the effectiveness of internal controls and internal audit processes.
We bring our insights into the functioning of the company, its accounting processes, and corporate governance. It helps to identify internal control weaknesses and achieve higher operational efficiencies.
Our statutory Audit will accurately represent the company’s financial position. It helps a company maintain its reputation and brand image.
Our auditors highlight the errors in omissions made in the preparation of financial statements and get them rectified. It helps maintain accurate books of accounts.
External auditors are independent auditors having no financial interest in the company, and we do not engage with the company in any other way than performing the Audit. Hence, we maintain independence and impartiality while issuing our opinion on financial statements.
Without an external audit, there will be no checks on the financial records generated by employees. Therefore, an external Audit ensures that chances of fraud are kept in check.
We follow all external audit principles to deliver results with razor-sharp accuracy while adhering to deadlines. Additionally, we conduct the tasks in a highly professional and ethical way.
After our auditors provide their stating whether the entity’s financial statements are factual and unprejudiced, we prepare an audit report based on the insights.
According to the Commercial Companies Law of UAE, the statutory audit report is mandatory for all companies operating on the mainland.
You should keep your financial records accurate and up to date. It would help to verify that you have documentary evidence for all the transactions. You should reconcile your accounts to identify and resolve items before external auditors arrive. You should insist that your auditors provide a checklist of items you should be ready with before they come for external auditing.
You should also identify where your auditors can easily access 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 for you and the auditor.
In the case of a VAT audit or tax audit, only tax-related documents are audited. However, in the case of an external audit, all the financial records go under the audit process.
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