You can obtain many benefits from an audit by audit firms in Dubai with regulated auditors who are capable of handling this matter for your company. Besides the fact that there are beneficial things to reap from an audit. It is also mandate by the government of the United Arab Emirates(UAE) for a company to hire a licensed auditor in UAE to audit their company. As per the Federal Law No. 2 of 2015, companies also expected to keep their financial records for five years.
We can help you with this. Farahat & Co. is known to be one of the leading top audit firms in Dubai, catering to businesses all over the country. Our 35 years of experience give us the extensive knowledge that clients need for a successful audit.
we give our clients quality solutions that help them prevent and eliminate issues that are present in their company. We are an up-to-date firm that is always on the loop with any changes in the accounting and auditing world to ensure that we are on par with international standards. If you want to know about auditing and its importance, please click here.
What is Audit in a Nutshell?
This is simply the assessment and review of a company’s financial statements. A licensed auditor does this too for companies. Auditor want to know that what they present on their financial records are true and fair or not. Companies should present their real financial status on their financial records for their own good.
An audit is either an internal or external one depending on the way a company wants to examine themselves. An internal audit is what is usually done by companies if they simply want to assess themselves to see if they are following the laws or their own policies. An external audit, what is mandate by the government of UAE.
What is the Importance of Audit?
Many would say that audit is important, which is indeed a correct theory. There are many beneficial things that a company can obtain from having their company audit because of the mistakes or issues or even fraud can unveiled when an audit done in a company. Because of this, certain internal controls updated and solutions can apply in order 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 basically base their decision on the financial status of a company. They need to sure that company they are investing worth it. Or the company they lending to can actually pay back what they owe.
Aside from above details about its importance, auditing of company also mandate that the government of UAE laid down.
What is an Audit Report?
This is what a company going to given by an auditor once an audit finished. It is where the details about audit, the things have noted by auditor. And the suggested solutions have written. It is a report that 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 differentiate more often than the others.
Many know this opinion as for clean one because it practically states that 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’ economic standing. It only states a company’s fair and correct financial statements, following conformity with accepted accounting principles and legal requirements.
This one also states that company’s financial statements show correct and fair representation of their financial status but aside from certain area/s. Most matters that need to dealt with in an audit have done so except for a few. It means that company in question possibly has accounting methods that don’t conform to the standard and accepted accounting principles.
This happens when a limitation of scope is present in the work of auditors in Dubai. It is also possible that a disagreement arose between two parties (auditor and management) that cause the auditor to not 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 their financial statements.