Financial auditing is essential for a company to ensure the regulators, investors, managers, and directors that the financial statements are accurate and complete. It will also help your company make critical financial decisions to put your business on the success path. Audited financial statements are mandatory requirements by financial institutions in UAE, when your company applies for credits or loans. The investors will read the audited financial documents to make their investment decision.
Understanding internal and external audits
Internal auditing in UAE is all about evaluating the effectiveness of risk management and process governance within an organization. Internal auditing will improve the performance of risk management and governance strategies in the organization. It ensures that the company’s financial, strategic, and operational profile is aligned with the business goals and objectives. It aids in streamlining business processes to reduce risks and increase efficiency. While internal auditing can be performed in-house, hiring an independent internal auditing Dubai service provider will help you look at neutral insights into the company’s performance.
An approved auditor must conduct external auditing in Dubai to confirm recognized financial standards. Financial statements are the primary focus of external auditing. You have to hire professional external auditing UAE services to ensure error-free auditing.
Planning determines the time required to complete the auditing process. The auditor will look at the company’s different departments to understand the procedures. The external auditing UAE company will then determine how the auditing process will be executed. All the financial documents required for the auditing stage are listed during this step.
2. Financial audit testing
The auditor will conduct multiple financial audit tests, before starting the auditing process. In this step, all the invoices, expense vouchers, and vendor transactions are reviewed to ensure the accuracy of invoice and vendor details. The audit testing process is customized for the company. All the financial statements and documents are kept ready to commence the auditing process.
3. Account analysis
In the audit execution phase, the auditor will check the details of all the account numbers, financial statements, and transaction details present in all the documents. All the changes in the accounts must be recorded with valid reasons. The auditor is responsible for researching and gathering information on the changes in the accounts. The auditor will also check the company’s compliance with the jurisdiction and country policies. The software applications and tools used by the accounting department to manage finances will also be checked.
4. Audit report preparation
The external auditing UAE process may continue for a couple of days, depending on the auditing plan. After completing the auditing process, the auditor prepares a detailed report on all the findings. If errors or discrepancies are found, the auditor will also suggest the best possible solutions in his report.
5. Closing meeting
The company management must organize a meeting with the auditor to discuss the auditing reports. It is an opportunity for the management to get input on auditor solutions to improve business finance and operations.