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Requirements and Preparation for Annual Audit

Auditing is an objective evaluation of the financial reports and reporting process of an organization. The primary focus of the financial audit is to provide assurance to the investors that the financial statements are accurate. The auditing of your company is a positive process. It will help to enhance the confidence of other people in your company.

Some people see auditing as a negative thing but it is the way to strengthen your company’s financial system. The annual audit is just a process of verification for the financial statements. The auditor will look for the accuracy of the numbers and processes so that you may know that what steps you need to take to protect your company from fraud. This process will help your company inform effective management in the future.

Being prepared for an Audit is important

If you are prepared before the start of the auditing process, it will give the auditor a nice impression that you have all the information about the processes of your company. It will increase the value of your organization. With the help of an auditor, you will be able to create new strategies and following them will improve efficiency and minimize error. As the audit process is long, your cooperation will help the auditors in Dubai to complete it in less time.

Find more: How Audit Firms in UAE Detect Fraud in Company Balance Sheet

What information do auditors need?

The audit process is based on the opinion of an auditor on the financial statements of a company. However, most of the details an auditor need are the general information that should be maintained by a company. The auditor will objectively evaluate evidence about the basic financial statement present in the form of numbers.

Also, the areas which will be addressed by the auditor are:

  • Completeness
  • Existence or occurrence
  • Rights and obligations
  • Presentation and disclosure
  • Valuation and allocation

The auditor from auditing firms in Dubai will also ask you about the differences in the values over the year. The company should be prepared for the types of questions that will contain information about the current results and the expectations.

You may want to know: What is the Difference Between a Qualified and Unqualified Audit Report?

Changes which can be asked by an Auditor

  • Operations, raw materials and distribution
  • Governance, management and ownership
  • Technology, personnel and union relations
  • Impact of economic development on the operations of a country

Demands for Financial Audit in UAE

The audit of the financial statement for a company is important in Dubai in the following situations:

  • You will need audited financial statements whenever you apply for the renewal of your license.
  • If you want to have certain bank facilities also.
  • When dealing with suppliers, they will need the report to assess your financial credibility.
  • It is a legal requirement.
  • The audited financial statements are considered to be the major evidence in lawsuits and legal disputes.
  • They are helpful for the business owners in checking the reliability of the company’s financial condition.
  • This process will ensure the best account management and also internal control practices.
Jose’s entire educational and professional career has circled around audit and assurance. While in India, he became a CPA and worked as an accountant and an auditor. Afterwards, he relocated to Dubai, where he joined Farahat & Co. as an auditor. He is currently assisting UAE mainland and free zone businesses with their compliance needs. With a reputation for proficiency, quality, and reliability, clients refer to Mr. Jose for independent assessments of organizations structures and operations.