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Auditing Companies in Dubai

The business dominion of Dubai has been experiencing a fast-paced progression. With increasing industrial expanse, several investors driving the funds are on the rise. The investors, government bureaucrats, and bankers, need evidence of financial prosperity and stability of various enterprises to identify the most credible, stable, and non-fraudulent entities to satiate their agendas. Hence, auditing companies are integral to the running of any business.

The Auditing companies in Dubai lend hands for the accomplishment of all the objectives sated above. Generally, an audit serves as an assurance to other concerned entities regarding an establishment under scrutiny. Also, the auditors who conduct the process do not just evaluate the establishment and submit reports, rather assist the establishments to improve their quality practices and resolve internal issues prevalent.

The process of auditing is ancient, which started as a process of book-keeping and since then has evolved into a complex and multi-faceted process developed for an improved operative of various companies.

Though an audit primarily focuses on financial record management and monetary administration, there are various sectors within a company that is evaluated and presented with propositions for enhancement of efficiency and competence, also helps with resource preservation. The major sectors include:

Secretarial and Compliance

Internal Controls

Quality Management

Project Management

Water Management

Energy Conservation

Auditors in Dubai would assist the establishments in Dubai with the aforementioned processes

Regularity vs. Performance:

The International Organizations of Supreme Audit Institutions (INTOSAI) established in 1953 is a worldwide affiliation of government entities governing and directing the principles of the auditing process and currently has 193 institutions as its member.

The auditing standards of INTOSAI identifies two types of Audit.

Regularity Audit:

Regularity Audit is in correspondence with statutory Audit and reviews financial records.

Budget planning and financial expenditure records are gone through and assessed.

Potential tax frauds, monetary mismanagements, and documentation faults have to be identified and rectified.

The audit report issued after the audit must encompass the auditor’s opinion.

Performance Audit:

Performance audit focusses on operational and functional facets of the establishment.

The efficiency of the policies and management guidelines of the establishment have to be reviewed and checked for advancements.

The auditor makes sure that the company’s current procedures are adequately efficient to utilize provided resources.

The auditor’s report is liable to comprise a statement of assurance on articles verified for compliance, which shall be composed as a part of the auditor’s conclusion.

The auditing companies in Dubai follow GAAP, guidelines of INTOSAI, and prepare reports accordingly. They also follow the standards set by the International Standards for Financial Reporting.

Responsibilities of Auditors in UAE:

Firstly, they must evaluate the establishment’s financial records, check for anomalies, and verify their compliance with given governmental guidelines.

Secondly, they must make sure the auditing procedure and report preparation is in correspondence with International Auditing Standards and provide wholesome report inclusive of the risk assessment. The accounting companies in UAE are updated with regional legal guidelines and also are up to date with the international standards.

Thirdly, they must help verify and validate the management and functional policies of the establishment and evaluate their working efficiency. The auditor must suggest alternatives that tend to make the procedures relevantly competent.

Finally, frauds, miscarriage of records, false documentation, etc. are to be reported and immediate amends must be imposed. The accounting/ auditing companies in UAE are liable to identify and eliminate fraudulent activities in companies under their service.

The auditor’s report must be fair and inclusive of all factors dictating a company’s stability and credibility.

Likewise, the auditors and Chartered accountants appointed by the accounting companies in Dubai make sure that all the underlying quality management protocols are implemented in the companies being audited.

Audit:

Generally Accepted Accounting Principles (GAAP) establishes certain methodologies implemented during auditing.

Here are the records that an audit requires:

Tax invoices of goods and services availed by the establishment as resources, raw materials, or any other functional facets with documentation and account for the utilized resources.

The establishment must also produce required credit notes, and banking credits in distinct documentation.

Invoices and receipts generated for goods and services delivered by the establishment and their financial records. The documentation must be inclusive of transport, production, and other values pertinent to the services.

Documentation of assets and investments undertaken by the organization and expenditure and income documentation relevant to the same.

All financial book-keeping records, ledgers, bank statements, and records of all transactions inclusive of payments, expenditure, and input capital.

Professionals then assess and recalculate records to trace mismanagements, omissions, or additions. The verified tangible assets from the inventory list help the establishment do the needful to record and handle them.

The auditor also assesses the company’s competence with advanced methodologies and analyze their market position and trend. All these help in risk assessment of the company and the company can upgrade using strategies that complement its growth in the market. Therefore, it is clear, that establishments require the help of auditing companies to make the right fiscal decisions.