The financial standing of the company in this cutthroat industry is indicated by external auditing. External auditors provide accurate reports and conduct unbiased reviews of their work. By eliminating mistakes, fraud, and misstatements, the external audit guarantees the correctness and completeness of the accounting records inside the accounting framework. To assist private businesses and the government in verifying accounting records, RFZ Accounting provides smooth external audit services in Dubai and throughout the United Arab Emirates.
External Audit Steps
- Appointment of an auditor For an external audit, a chartered and independent auditor is appointed. It is advisable to hire a non-member of the organization. The company may choose the auditor based on their qualifications, experience, and skill set.
- Letter of acceptance Through the letter, the auditor affirms that they have accepted the position. There is a clear statement of the duties and extent of the labor.
- Risk assessment The auditor will gather, evaluate, and interpret data throughout this phase to gain a deeper understanding. An auditor finds and assesses risks and recommends solutions. It consists of:
- Gather information about the business and its operations.
- Determine whether the business adheres to the International Financial Reporting Standards (IFRS).
- Assessment of the accuracy of financial records
- Careful review of the payroll, purchasing, and accounting data
- Scrutinize the documents for any financial misstatements brought about by errors, fraud, or misappropriation.
4. Evidence Collection Collecting the data to fortify the materiality, verify assets, and ensure compliance with standards and accounting procedures.
5. Report Submission Following in-depth analyses and a qualified opinion on the organization’s future, the auditor presents the audit report to management.
Documents Required
- Fixed assets purchased documents
- Bank account statements
- Payroll reports
- The company’s loan documents
- The ledger and trial balance
Why Hire External Auditors in Dubai?
An external audit is required for any company registered in the United Arab Emirates. An external auditor prepares an audit report per International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).
The external audit report lends each company’s financial report greater legitimacy. It assists investors or other interested parties in the company in determining whether there has been any fraud or misrepresentation in the internal financial statements because it is an independent audit report. An external audit in Dubai can help your company’s financial records look more credible.
Key justifications for using external auditors in Dubai include:
- An impartial assessment of the company’s financial standing
- Exact information required by the business to assess its profit or loss
- Guarantee businesses that data and practices are authentic
- Minimize risks of inaccurate financial data
