According to the institution, the success of a business company is always associated with financial credibility. If, in any case, there are some discrepancies or errors in your financial records, you might incur a heavy loss in your business. Therefore, auditing, in this case, might help your business comes to terms and achieves the missed benefits.
Nonetheless, conducting an auditing process is not easy, especially if you are not well-versant with the intricacies needed to execute the entire process successfully.
If you don’t know any steps to take in the auditing process, you can get in touch with our professional business consultant at Vigor to walk you through them.
Additionally, the following are the noteworthy steps to take into consideration in the audit process in dubai;
- Assessment of the previous audits
- Receive notification from the Office of Internal Audit Services
- Discussion of the audit program
- Conducting Fieldwork
- Crafting of the report
- Response from the management
- Closing Meeting
- Distribution of the final audit report
Generally, there is nothing technical involved in the audit process in dubai if you have the right team to guide you. And that’s where Vigor Business Set up Company Formation in Dubai comes in.
Apart from discussing the auditing process, we’ve documented salient pointers to help you get in-depth knowledge about auditing in the UAE. The following are some of the points you’ll encounter in this guide;
- What is auditing?
- Why do you need an audit in Dubai?
- What factors should be considered while preparing an audit procedure?
- How can you make an audit more efficient?
- Audit requirements in Dubai
What is auditing?
Typically, auditing refers to examining or assessing financial books by an auditor. Inspection of financial books is followed by physical scrutiny of inventory to ensure that all departments are incongruent with the system of recording transactions.
The main aim of conducting auditing is to confirm the accuracy of all the financial statements issued by the organization. Similarly, auditing is always done to benefit the company’s shareholders and the owners to come up with better decisions to up their financial problems, if any.
But do you need an auditor for your company? Let’s find out;
Why do you need an audit in Dubai?
Financial statements that auditors ascertain are essential to consider in different economic activities such as banking, creditors, and lending institutions when the company needs a loan.
Similarly, investors in Dubai might seek an auditor to convince them on the right track regarding loans requested for their business. In addition, the relevant authorities in the UAE might ask to see your audited financial statements of their own choice.
And so, it is prudent to consider auditing your financial records for the benefit of your company.
What factors should be considered while preparing an audit procedure?
While preparing to conduct an audit process in dubai, several factors might come into place to determine your auditing procedure.
Therefore, before preparing an audit procedure, the following are some of the things you’d want to consider;
- How big or small the company is
- The nature of activities conducted within the organization
- The environment in which the country operates
- The accounting system
- The knowledge of the customers’ business
- Internal control and adherence to standard
How can you make an audit more efficient?
Are you wondering why your auditing process takes longer than it should be?
Having your auditing procedures done quickly brings less harm than when the entire process takes several months.
If you want to quicken the auditing procedures, you may need to follow the following simple audit efficiency hacks to make the process more valuable and less painful.
Audit efficiency hacks;
- Ensure your files are correctly organized
- Ask a question to inquire more about the entire procedures
- Adhere to the proper auditing procedures
- Follow the prepared client checklist
Audit requirements in Dubai
Before the auditing procedures take place, companies must organize their documents well in line with all the policies needed for auditing procedures.
And so, during the annual audit in Dubai, as a business owner, you are supposed to answer all questions posed to you by the auditors. Some of the questions will demand you to provide some of the relevant documents required to make your auditing procedures successful.
Therefore, some of the documents required to submit during the audit process in dubai as a business owner include the following;
- The loan statements of your business
- Copies of your business legal documents
- Listing of all your company bank accounts
- The payroll report
- The minutes of all boards
- The General Ledger
Now that you are well-versed with all the nitty-gritty involved in the audit process in dubai to make it successful, how do you execute the auditing process in Dubai?
Let’s discuss the auditing steps in detail;
7 Steps in the Audit Process in Dubai
Step 1; Assessment of the previous audits
This is the first step in the auditing procedures whereby the auditor will be required to review or assess the previous audits in your region.
Similarly, the auditor will have to research the stated and applicable rules and regulations to comply with before preparing the audit.
Step 2; Receive notification from the Office of Internal Audit Services
After setting everything ready, a piece of information from the Office of Internal Audit Services concerning the upcoming audits and their primary objectives.
When this is done, the time and the opening meeting will be slated on when it will happen.
Step 3; Discussion of the audit program
In this step, a solid discussion about the audit program will be conducted.
Therefore, any administrative personnel and the management personnel ought to be involved in the discussion of the audit program.
However, there might be some adjustments in the audit program if any changes broach up during the discussion of the audit program.
Step 4: Conducting Fieldwork
Generally, this step might involve interviewing the relevant department personnel and testing to get everything on the right track.
Step 5; Crafting the report.
Immediately after the above step is done successfully, a report is made.
The report, therefore, must contain the scope of the audit, objective, background, recommendations or improvements, and the finding collected during the fieldwork.
Step 6; Response from the management
After the audit report is drafted, it will be handed over to the management of the audited region, area, or place to assess and fire back responses concerning the audited report.
Thus, the response from the management must entail the action plan for the audit amendments. When all these are perfectly done, the meeting will be closed, and the final audit will be distributed to the Chief Financial Officer, the President, CWRU’s external accounting firm, and Provost.
