Advantages Of External Audit Services In Dubai,UAE
An external audit is the detailed and independent examination of the books of accounts of a company which is prepared by the accounts department or an independent auditor. It is an impartial scrutiny which aims at zero error within the financials.It urges as a form of objective analysis on the financial standing of the business, conducted at regular intervals of time. The major purpose of external auditing is to enhance the accuracy and transparency. External audit varies based on the regulations and standards used. As Dubai, one of the developed business hubs of the world with millions of business activities, relies purely on external audit services for veracity and to stay out of fine from the law.
Add Values to The Business
An audit adds value to your business and provides a competitive advantage by enhancing internal control activities within the organisation. An audit attracts interests from external stakeholders and investors, as it adds credibility to your financial statements. An external audit provides reasonable assurance that the financial statements of the entity being audited are free from material misstatement. However, external auditing services in Dubai, is often seen as expensive as it adds practical value to businesses.
Adding value to the business brings these benefits:
- Better decision-making
- Managing complex compliance requirements
- Promoting good business practice
- Growing your business.
- Provide reasonable assurance to the financial statements.
Brings in investors
A highly professional audit work can add credibility of the investors and could enhance their investment in the company. An independent process to prepare and report the audit work to the company for understanding the financial position along with strategic decision making. Audit report information is used by the investors, government agencies as it builds trust and confidence in doing business.
How external audit services in Dubai bring investors:
- External audit helps to maintain financial statements more transparent.
- Easy interpretation of the financial statements to the management.
- Regular submission of audit reports can enhance the confidence of investors.
- An audit-ready business always attracts more investors and more customers even from foreign direct investments.
- Regular audits can bring increased business rating to the company.
Investors have more trust in businesses when they are ready for distributing their original financial data to the public. The companies always have up to date accounting information and their accounting statements match with their daily bookkeeping functions.
As auditing is a critical examination it detects errors and fraud which appears in the financial statement.It can be due to omission, commission or any other. Sometimes companies make these intentionally by manipulating figures. Revenue recognition errors are one of the common types of fraud uncovered by auditors. Auditors also find evidence of fraud in estimates of accounts payable and other accounting statements. Sometimes this can put companies at high risk with overlapping duties.
Identify weakness in internal audit
You will find two types of auditors one is an internal auditor who works within the organisation and the other is external auditor. External auditors go through the financial statements of the company and attain everything that is against the laws. Internal auditors are appointed by the company for sound financial health. Hiring the External auditors in Dubai has become a necessity of this era.
Internal audit helps expand the usage of internal control procedures and introduce risk management plans for better functioning. Audit procedures start by assessing current processes and procedures. Auditors analyse and compare the results against internal control objectives and monitor their compliance with rules and regulations. The final step is the preparation and presentation of the report.
Monitoring and measuring of the effectiveness of internal control procedures are the major aim of the auditors. Sometimes indirect assessment techniques are used for monitoring which includes reviewing the documents. Audit trials are conducted to discover the minute changes. Techniques in the second stage include one-to-one interviews and process observations.
The function of audit committees is to maintain integrity and independence in the financials. It overlooks the compliance of financial statements with the rules, regulations & standards. Audit committee ensures that:
1)Reliability of financial statements;
2)Effective Risk management system;
3) compliance with the management code and rules.
4)Adequate performance of the auditors
Apart from the members there are financial experts who provides legal counsel for the companies in Dubai.
Enhance the credibility of Financial Statements
Credibility is often associated with the trust and faith of the investors in the financials. Independent auditors measure the accuracy and disclose the material facts which are not in accordance to the law. So, through external audit the credibility is increased and helps the investors to feel more confident on their investments.
Trustworthy reports to customers and suppliers
As the reports are highly accurate and material, the third-party users like customers, and suppliers can rely on these and make informed and smart decisions on forward business and funding decisions.
Smoothens the Tax Audit
Tax audit is initiated by the Federal Tax Authority. Accuracy and materiality of the accounts and reports helps in smooth filings and claim VAT return if necessary. A credible system enhances the public confidence and investor funding.
Tool for decision making
Audited reports act as a tool for the top-level management for decision making on managerial functions and investments for business affairs. Smart decisions can be made with the help of this expert opinion and can improve the performance.
WHY CDA IN EXTERNAL AUDIT
CDA is a squadron of accomplished, capable and certified auditors who are proficient in External Auditing services in Dubai. Our expert external auditors provide consistent and unflustered solutions for the benefit and advancement of your company. We provide legitimate conclusions to your business that helps to keep a better position in the competing market.
Our team is the Big4 experienced and leading auditing firm in Dubai. The team has good experience in a wide portfolio of industries. Our multi-tasked team who are working as CFOs for different MNCs will help internally for the decision making as well.
CDA also provides Business strategy & CFO services, Accounting Services, Auditing & Assurance Services, Vat & Tax Consultant Services, Implementation of Accounting Software Services and Due Diligence Audit Services.
If you need any of our services, feel good to contact us. Our expert will call you back immediately, and will offer you one-hour free consultation.