Audit and assurance service is one of the core services that every business need to track their financial transactions. More than just the records inspection and approval process, CDA Audit and Assurance Services in Dubai, UAE is focused on providing a transparent and systematic financial statement audits and other assurance services to give valuable insights into your business. Our professional auditors in Dubai creates a precise, comprehensive, and balanced audit, ensuring compliance with the regulatory requirements.
An entrepreneur who owns either a small scale business or a large scale business ought not to spend much of his time exploring the accounting and auditing aspects of a business. Instead, he can spend much of his vigour on recuperating returns, increasing the number of employees or improving his services and products. Being a business owner, you need to do business valuation, identify risks, boost credit, accomplish business objectives etc. Hiring auditors in Dubai can help you in this matter through proper evaluation of the company’s financial reports.
Auditing is a technique for evaluating the efficiency of a company's domestic controls. Upholding an effectual system of internal controls is imperative for achieving a company's business objectives, acquiring consistent financial reporting on its operations, putting off fraud and embezzlement of its assets, and playing down its cost of capital. The internal, as well as the independent auditors, contribute to a company's audit system in different but important ways. Hiring a proficient auditor in Dubai can help your businesses unearth problems and guarantee effectiveness providing a high level of assurance.
An audit is a methodical and sovereign examination of books, accounts, statutory records, documents and vouchers of an organization to make certain how far the financial statements, as well as non-financial revelations, present a true and fair view of the concern. In other words, it is an examination of an existing system, report, or entity.
Assurance service is the process of analysing. It is used in the assessment of accounting entries and financial records. Assurance service can be compliance-based or regulatory. Assurance service ensures whether a company follows guidelines, rules and policy, and provides internal and external confidence for financial statements.
The significance of Audit is increasing with the passage of time because there are always more and more things to reconsider and whistle when things are differing. The businesses become more multifaceted and the management of the companies are playing different methods to beat the market. When the countries or societies are rolling at greater speed with technological developments, new ways of doing things are arising. In order to cover such activities, accounting and auditing have to grapple with the market movements and ensure that stakeholders’ interests are well sheltered.Discussed below are some of the points regarding the importance of an audit.
a) Evaluates the Risk of Misstatement
Without an audit system, a company would not be able to create reliable financial reports for internal or external purposes. Consequently, it would be unable to conclude how to allocate its resources and to know which of its segments or product lines are profitable and which are unprofitable. So, an audit system is crucial as auditors weigh up the risk of material misstatement in a company's financial reports and help the company overcome the stumbling block.
b) Facilitates the Quest for Business Objectives
An effective audit system is significant for a company because it facilitates the company to chase and accomplish its various commercial objectives. Business processes need various forms of internal control to smooth the progress of supervision and monitoring, to thwart and perceive irregular transactions, to gauge ongoing performance, to keep up adequate business records and to endorse operational productivity. Internal auditors reassess the design of the internal controls and casually propose improvements, and document any material irregularities to enable further investigation by management if it is necessary under any circumstances.
c) Cost of Capital
The cost of capital is significant for every company, in spite of its size. The cost of capital is largely comprised of the risk associated with an investment. A better audit system can lessen various forms of risk in an enterprise.
d) Fraud Preclusion and Exposure
Internal audit doles out an important role for companies in fraud anticipation. Frequent scrutiny of a company's operations and maintaining painstaking systems of internal controls can avert and spot various forms of fraud and other accounting irregularities. Audit professionals help out in the design and alteration of internal control systems to assure fraud prevention.
1. To reassess the acquiescence with a multitude of managerial regulations.
2. To reassure the effectual operation of a business.
3. To retain/augment the status of the business in the community.
4. To execute a “due diligence” review for shareholders or potential investors.
5. To inculcate a sense of buoyancy in management that the business is functioning well and you are prepared to meet potential challenges.
Given below are the most popular types of auditing performed for businesses:
a) Internal Audit
Internal audit is an autonomous, objective assertion and consulting activity designed to add value and improve the operations of a business. It helps a business to achieve its objective by bringing a systematic, disciplined approach to appraise and advance the efficiency of risk management, control and governance process.
Purpose and Scope of Internal Audit
The purpose and scope of internal audit activity should be aptly broad to meet the need of management to achieve its objectives. An internal audit includes:
b) Tax Audit:
This is an examination of the tax returns submitted by an individual or business entity to see if the tax information and any resulting income tax payment are valid.
c) Compliance Audit:
This type of audit is an examination of the policies and procedures of an entity or department to make sure if it is in compliance with the internal or regulatory standards. This audit is most commonly used in regulated industries or educational institutions.
d) Construction Audit:
This audit is an examination of the costs incurred for a specific construction project to ensure that the costs incurred for a project were rational. It may include activities such as scrutiny of the contracts granted to contractors, prices paid, overhead costs allowed for settlement, change orders, and the appropriateness of completion.
e) Financial Audit
Financial Audit is a scrutiny of the even-handedness of the information contained within the financial statements of a business entity. This is the most common type of audit conducted by a Certified Public Accountant (CPA) which is independent of the business under review.
It implies an examination of the books of accounts and other relevant records. This will provide the auditor necessary information to give his opinion whether the accounts are properly maintained and complied with necessary statutory accounting or financial reporting and auditing standards.
The basic objective of a financial statement audit is to provide an independent or third-party assurance that the management has, in its financial statements, presented a “true and fair” view of a company’s financial performance.
CDA Accounting and Bookkeeping Services LLC offers strategically designed auditing services in Dubai for business and it involves various phases. Given below are the processes involved in the audit process of CDA.
2. Financial audit tests:
3. Account analysis:
4. Preparation of audit report
f) Information systems audit
It involves a review of the controls over software development, data processing, and access to computer systems. The aim is to spot any issues that could damage the ability of IT systems to provide accurate information to users, as well as to ensure that unauthorized parties do not have access to the data.
g) Operational audit
This is a detailed analysis of the goals, planning processes, procedures, and results of the operations of a business.
h) Investigative audit
This is an examination to locate and remedy control breaches, as well as to collect evidence if charges are to be brought against someone.
Usually, external audit is conducted annually. If the management of a company needs special purpose audits, it can be carried out for a different period or even number of years.
Auditing in UAE has become mandatory in both the free zones and in the mainland. The authorities insist filing of audit reports as a compulsory requirement for renewing the license of the company in the Free-zones. Annual audit is required to be done in the mainland as per UAE commercial company law. The banks insist filing of an audit report for continuing the finance facilities wherever they have financed materially. Occasionally, suppliers or customers or other stakeholders ask financial audit report. After the execution of the UAE VAT, the management of a company will have an additional responsibility to corroborate the revenue through the audit report.
An audit firm in Dubai, UAE helps in measuring the financial stability of a company. It helps a business owner to form an opinion about the current processes of a business and also helps in making decisions about the future of the business. The audit report provided by audit firms outlines a precise and complete picture of the financial health of a company.
Audit and Assurance is the assessment of a company’s accounts to institute trustworthiness with the financial information for the benefit of the owners and shareholders of the company to make better decisions. According to Federal Law No. 2 of 2015 or the UAE Commercial Companies Law, every company is required to allocate a licensed auditor that is registered under the Ministry of Economy for the auditing of their financial affairs.
With a team of certified auditors in Dubai, CDA offers the complete range of Audit and Assurance services to meet the business needs of the customer in this vibrant global environment. Other than auditing services in Dubai, CDA offers Bookkeeping Services, Financial Advisory Services, Tax Consultant Services, Internal Audit For Company and other tax-related services.
Need audit and assurance services in Dubai? Do contact us. CDA experts will ensure that your company’s accounting, auditing and assurance procedures grapple with the market movements and that the stakeholders’ interests are well protected.
It is not compulsory, but it is recommendable for companies for their Banks and third parties. Statutory audit is performed by a Chartered Accountant as required by the Law of the respective country, to ensure the statements provided to the public are free from material misstatements and are true and fair. The audited statements provide only reasonable assurance.
Certain entities in Free Zones have to compulsorily get their accounts audited in UAE. Also, it has been specified that all the companies in the mainland are to be audited.
Auditing will help you in organizing all the records for tax filing and ensure compliance with the laws in calculating the Output and Input tax.
All the required values will be filled in the VAT 201 Form, approval taken and duly submitted to FTA within the time frame.
Internal audits are performed throughout the year, evaluating a company’s internal controls and the accounting processes within a company. They provide recommendations and assistance to the employees of the company. The reports generated by the internal auditors are for management purposes only.
An external audit is performed by an independent professional i.e. not an employee of the company. External auditors issue audit opinions on whether the financial statements are ‘true and fair’. Unlike internal auditors, they test the transactions of a company on a sample basis. Hence, external audit ensures only reasonable assurance on the financial statements.
An audit might ideally take 2 to 4 Weeks. However, the duration of an audit would depend on its scope, access to records and responses from the management.
One of the Code of Ethics for an Auditor is to maintain confidentiality. This would be enclosed in our contract with the respective client. But, if the law requires the auditors to disclose any information about the client due to any suspicion, it will not be considered as a breach of confidentiality.
You would want an audit for your financial statements because:
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