Are you expecting an external audit for your company? You need to give the auditing accountants the best impression of your organization. Unlike an internal audit, an external audit is always thoroughly and transparently conducted by independent personnel with no ties to your corporation and no fear of retaliatory consequences.
You can choose a reputable auditing firm out of the various available firms in Dubai to evaluate your company system and offer credible flaw-fixing solutions to ensure your company complies with the laws and regulations in place. An external audit may also be necessary to verify the results of an internal audit and unearth any overlooked loopholes.
You have to prepare beforehand for the best auditing report to give the best impression. Here are some useful tips on how to go about it.
- Identify your SMEs
- Have a good prior understanding of the auditing process
- Have an experienced audit manager and coordinator
- Make proper prior fieldwork arrangements
- Create a good rapport.
- Have supporting documents at the ready.
- Understand the auditing firm’s judgment standards and criteria.
- Be readily accommodative of the audit findings.
Read on to discover more details.
1. Identify your SMEs
The Subject Matter Experts are company personnel who comprehend and effect particular duties essential to the success of the external audit. Brief all your employees on the level of performance you expect them to deliver during the auditing process. Your SMEs should be fully involved and prioritized in allocating necessary resources.
2. Have a good prior understanding of the auditing process.
You need to be aware of what the auditing process in the UAE entails so you can be able to prepare well for an external audit in Dubai. The auditing process typically begins with an opening meeting where the auditing procedure is revealed and expounded upon. The accountant then implements the auditing procedure discussed.
The final stage is the closing meeting for revealing the findings and scheduling the next audit. It is important to try and figure out what the auditing procedure entails before the actual audit to be ready with all the requirements and to ensure a speedy, flawless and efficient audit.
3. Have an experienced audit manager and coordinator.
Appointing an audit manager and coordinator is an important part of preparing for an external audit in Dubai. The audit manager is intended to coordinate with the auditor and work with the SMEs to perfect your preparation for the audit. They are required to be efficient, skilful, persuasive, and eloquent. They help train the SMEs through realistic drill document presentations, interviews, and analysis of the ensuing findings.
The audit manager should chair meetings for all personnel with key roles in the audit process and deliver updates and briefings about the audit to all SMEs and every person involved.
A tech support team is also supposed to be put together by the audit manager if the need arises during the procedure.
It is also the audit manager’s task to obtain a heads up of the purpose and objectives of the audit to be in alignment with the preparations and ensure the conference room is for a smooth audit.
4. Conduct proper fieldwork before the audit
You will need to designate a specific time to avail all the documents required of you by the auditing firm or accountant in Dubai and check thoroughly to ensure all the required documents are available and presentable. Afterwards, identify possible questions you may need to answer during the procedure, and ensure you have the answers at your fingertips.
5. Create good rapport
It is important that you set off on the right foot with the auditing accountant or firm. This may help swing the audit’s final report more in your favour. Give the auditing accountant clear directions to your organization, and if they don’t mind, you can even arrange for them to be picked up. Ensure they receive a warm reception and provide everything they need to conduct the audit, including internet connectivity. Give them free access to your business premises, and as a gesture, you may provide clean drinking water and refreshments during the auditing procedure.
The process occasionally takes several hours, so you can arrange for meals to be provided during the lunch break. This is a good gesture that will eventually contribute to a good impression of your company’s culture.
6. Be ready with supporting documents.
Apart from the standard documents required of you by the auditing firm, the auditing accountant may require you to provide additional supporting documents to verify the credibility of the documents and information provided.
These may include financial statements, among others. Make a list of possible supporting documents required for every document you initially provided and ensure you have them ready just in case.
7. Understand the firm’s judgment standards and criteria
An external audit in Dubai and practically anywhere else will always be conducted based on the accountant or firm’s criteria and standards. You need to predict the standards against which you may be evaluated and tailor your preparations within these standards.
8. Be readily accommodative of the audit’s findings.
Always be open to criticism, and accept and recognize any flaws in your system during the procedure without taking anything personally. Discuss them at length and explore possible ways of fixing them. Take each external audit finding as a stepping stone to a better report in the next audit. Accept the findings and make plans to effect necessary reforms before the next audit.
An external audit is an independent, unbiased review aimed at helping your company comply with Dubai’s corporate laws and regulations. They are meant to verify the findings of an internal audit indiscriminately. An external audit is a crucial requirement for any corporate or Business Setup in Dubai small organization and should be duly prepared.
Poor preparation leads to unnecessary inconveniences during the procedure, a prolonged auditing process and considerably high chances of a poor audit report. You need to ensure you have all the necessary documents and supporting material. Your personnel should also deliver their best during the auditing process. An audit manager is essential to the preparations, as they ensure you have all the SMEs and relevant personnel in alignment with the auditor’s expectations.