Approved Auditing Firms in Dubai
You can take many advantages from an audit by audit firms in Dubai with regulated auditors who can handle this thing for your company. Besides the fact that there are helpful things to receive from an audit, it is also mandated by the state of the United Arab Emirates (UAE) for a company to choose a licensed auditor in UAE to audit their company. As by Federal Law No. 2 of 2015, firms expect to keep their financial records for five years.
The clarifications that we provide to our customers are quality ones that help them stop and eliminate problems that are existing in their company. We are the up-to-date firm that is always on the ring with any modifications in the accounting and auditing world to assure that we are on par with worldwide standards. If you want to know concerning auditing and its importance, please click here.
Audit in a Nutshell
It is just the assessment and review of a company’s monetary statements. A licensed auditor prepares this too for companies to know that what they do on their financial reports are true and fair or not. Companies should present their real financial situation on their financial records for their good.
An audit is either an external or internal one depending on the way a company desires to examine itself. An internal audit is what is normally done by companies if they simply want to assess themselves to see if they are following the laws or their policies. An external audit is what is mandated by the government of UAE.
Qualifications of an Auditor
CPA—Certified Public Accountant is the title given to accountants who have qualified through a board examination. It is usually regarded as a license for an accountant to provide accounting services to the public.
CA—These are people who are in the fields of financial, audit, taxation, etc. Chartered accountants are known to be the first accountants that have formed the professional body of accounting. Some chartered accountants are involved in public work, some of them are in the private sectors as well, and those who are in the government authorities.
Importance of Audit
Many would say that audit is important, which is indeed a correct theory. The company can obtain many beneficial things when the company audited. Due to this audit, many issues, mistakes, as well as fraud, is revealed. Because of this, specific internal controls can be updated, and solutions can apply to eliminate those issues and even prevent them from happening again.
Aside from the above, audited financial statements are necessary for lenders, investors, lending institutions, banks, etc. to be reviewed before they agree on investing in or lending to a company. They base their decision on the financial status of a company. They need to be sure that the company they are investing in is worth it or the company they are lending to can pay back what they owe.
Documents to be sustained for audit
The following are the list of documents to be maintained and submitted for auditors.
- Legal documents like Memorandum of Association (MOA), Articles of Association (AOA), Trade license copy, Share certificate, certificate of incorporation Tenancy contract, etc. are required to be maintained.
- Bank statements and confirmations of banks
- Balance agreement from debtors, creditors, and third parties (as per the auditors give the samples).
- All Copies of Ledgers, Statement of deposits from the DMCC portal, expenses bills, sales invoices, purchase bills, etc. to be maintained.
Such additional information as the auditor may consider necessary.
Audit Report
It is what a company is going to be given by an auditor once an audit is finished. It is where the details about the audit, the things that have been noted by the auditor, and the solutions suggested are written. It is a report that is given to the higher-ups of a firm.
Common Types of Opinion
There are four types of opinions in a report, but these two are seemingly differentiated more often than the others.
- Qualified Opinion
This one also states that a company’s financial statements show the correct and fair representation of their economic status but aside from a particular area/s. Most matters that need to be dealt with in an audit have been done so except for a few. It means that the company in question possibly has accounting methods that do not conform to the standard and accepted accounting principles.
This happens when a limitation of scope is present in the work of auditors with audit firms in Dubai . It is also possible that a disagreement arose between two parties (auditor and management) that cause the auditor not to be able to handle certain matters or areas.
It can be noted, though, that a qualified opinion can mean that the company in question has a deteriorating business because of the lack of transparency of its financial statements.
- Unqualified Opinion
Many know this opinion as for the clean one because it practically states that a company’s financial records comply with accounting standards. This is what companies strive to have. When a company has this, it means that its financial statements correctly and fairly represent a company’s status financially.
What it does not do, however, is reveal anything about a business’s economic standing. It only states a company’s fair and correct financial statements, following conformity with accepted accounting principles and legal requirements.
