Audit firms in Dubai provide auditing Services to entrepreneurs & business companies in UAE helping them get accounts audited every year. The auditing Services in UAE performed by audit firms in Dubai are extremely essential for the management of business & firms in Dubai and UAE as it ensures that the company’s records are in order, error-free, and reliable.
Understanding Auditing services
An audit is an investigation and assessment conducted objectively by audit firms in Dubai to determine the accuracy of the information presented by a business. Generally, auditing procedure takes place every year.
The main objective is to ensure that financial information provided is fair and accurate, inasmuch as auditing Services in UAE are performed to determine whether financial statements and records are maintained in accordance with the relevant accounting policies or not.
Types of Auditing Services in UAE:
Audit firms in Dubai adopt certain auditing standards and procedures that must be followed during an audit procedure. Such procedures and standards are is determined by the information being assessed and therefore differ according to the type of audit being conducted. Audits can be conducted either internally or externally wherein financial reports are checked by Audit firms in Dubai in case of financial auditing. Thus, reports are issued respectively containing relevant income/cash flow statements, balance sheets, as well as important notes … etc. These reports are being issued in line with the type of auditing targeted and outlined.
What are all the types of Auditing Services in UAE performed by audit firms in Dubai? In this article, we outline 5 different types of Auditing Services in UAE being the main types conducted as required in UAE. Brief definitions are shared respectively for each type as follows:
1. Internal Audit:
With the intention of business asset protection, internal audit, as a type of auditing services in UAE, is an in-house procedure conducted by internal auditors employed by the company for internal control purposes aiming at verifying the business operations’ compliance with legal requirements. Whilst internal audit is performed by auditors within the business who are not independent of the business organization, they are to maintain their objectivity towards the operations they are auditing. The internal audit results are helpful means for businesses to evaluate performance, mange risks and determine actionable plans for performance improvement. Internal Audit report results are submitted directly to the business board of directors or management for assessment and evaluation.
2. External Audit:
External Audit is the second type of auditing service performed by audit firms in Dubai at which point the audit firms in Dubai is a third party conducting the external audits in its capacity as an independent CPA firm; i.e., an independent auditor who is a certified public accountant (CPA) or chartered accountant (CA). External audit firms in Dubai conduct an independent assessment of an organization’s financial statements with the aim of providing reassurance to the organization’s stakeholders about the business financial health. External audit firms in Dubai assign their auditors to review the business operations, procedures, transactions and balances.fr the sake of reconciling the financial statements, External Auditors can also ask as for independent confirmations from external entities such as banks, customers, suppliers etc.
At the end of the audit the audit firms in Dubai submit an audit report which becomes a reference for shareholders, investors, lenders & creditors. It is then used as the source for gaining knowledge about the business’s financial status. Companies in most free zones in Dubai are compelled to submit the annual audit report, whereas, companies established in the Mainland opt for voluntary audit firms in Dubai in order to improve their business performance.
After having the two main important audit types, next, learn about their specific types of audits that can be performed by audit firms in Dubai internally, externally, or both.
3- Financial statement audit:
This type of audit is performed by audit firms in Dubai with the intention of reporting on whether a business’s financial statements comply with the applicable financial rules & regulations. Financial statement audit firms in Dubai produce financial statements that equip the concerned parties (stakeholders, investors, business owners, banks, suppliers and customers …etc.) with information about the business financial status and performance. This information is usually required by these concerned parties for making financial decisions. Typically, the parties appointing the financial statement audit firms in Dubai to provide them with the required information are not involved in the business management Therefore, they find their resort in these independent financial statement audit in Dubai to get assured or lift their confidence about the financial statements, status and performance of the business. Qualified external Audit firms in Dubai are engaged to examine the financial statements, including related all material respects produced by management such as disclosures, and issue their independent professional opinion on the status.
4- Forensic Audit:
Forensic audit firms in Dubai has become increasingly of vita role inasmuch as they address the business type of fraud investigation. Such audit firms in Dubai are becoming relevant at a time when business fraud is on the surge. Audit firms in Dubai conducting forensic audits trail & investigate any fraud related matters such as commercial conflicts & litigations or financial crimes
Forensic audit firms in Dubai examine the business financial records to determine any illicit finance operation. They, then provide information and evidence that may be used in court & legal authorities for conflict & dispute resolution among shareholders.
Forensic audit firms determine financial inaccuracies as well as the causes of such inaccuracies, the alleged party’s fraud, and susceptible increase r reduction in business revenue, cost or any other operational affairs.
The scope of activities handled by Forensic audit firms in Dubai like farahat and co. encompass a wide range of investigative actions such as prosecuting a party involved in a financial crime of fraud, embezzlement or other. Forensic audit may also include operations related to bankruptcy filing disputes, business closures or insolvency … etc. Forensic audit firms in Dubai often carry out their activities based on the need for evidence to be used in court, and in the instances of filing a case before Police in UAE at which point the forensic auditor’s certificate is required.