External Audit Services in Dubai, UAE
External Audit Services in Dubai, UAE
Farahat and Co Auditors provide external audit services in Dubai and other Emirates of the UAE. As the name suggests, an external economical assessment is an independently conducted statutory economical assessment examining the firm’s financials.
UAE has a statutory requirement for legally registered companies to conduct an economical assessment of the financial reporting process, such as the economical statements, to determine their accuracy and integrity.
An external auditor is required to report any misstatement or error through fair representation and transparent communication to the company.
The financial assessment cannot be conducted by a company related to the parent company or that has any vested interests in it. It is where the scope of the third-party audit gets generated.
An external Audit is an independently conducted economical assessment by an authorized services company like Farahat and Co.
What Is the Scope of External Audit Firms in Dubai?
The primary scope of an third-party audit(external audit) is to identify any misstatement in the financial statements prepared by a company’s accounting department. Farahat and Co. always appoints a qualified and experienced CPA to conduct an external economical assessment. Our account examiner confidently communicate the accuracy and completeness of the company’s financial reporting and internal controls process.
In turn, it helps the management, owner, and investors to make better decisions for the benefit of their company’s growth strategies.
Once the gap in the financial reporting is investigated and identified, the external audit proceeds to the next step of providing economical assessment plan to determine the cause and prepare an internal control design to avoid any future occurrence of such errors in the financial reporting.
Understanding the External Audit Process in the UAE
1. The Decision to Audit
A company’s key decision-makers confirm that financial assessment is to be executed. Farahat and Co. have always encouraged consultation with their clients before the external audit process begins. It ensures that each client receives a focused audit service rather than a uniform approach.
2. The Issuing and Accepting of an Engagement Letter
Once the financial assessment scope is finalized, an engagement memo or letter is drafted to be signed by both parties, confirming that the party conducting the economical assessment is an independent audit firm. The engagement letter also includes the scope of the economical assessment and the period for which the economical assessment will be conducted. The economic assessment letter is then accepted by both parties by signing it off, provided all the terms are clearly stated in the engagement letter.
3. Conducting the Audit Procedure
The most common economical assessment conducted during an external economical assessment are financial statements, operations, and compliance audits.
4. A Financial Audit
Examines the fairness and accuracy of the company’s economical statements and its compliance with the standard accounting principles. The external auditor must publicly issue a report on the health of the company’s financials, especially of publicly traded companies.
5. An Operational Audit
Examine the organization’s activity flow and if the performance aligns with the organization’s goals. The third-party audit will provide recommendations and an action plan for improvements to achieve maximum results from the company’s daily operations.
6. A Compliance Audit
A compliance audit is to determine whether or not the company is following the standard procedures of rules and regulations, inclusive of the local laws and code of conduct.
The Final Audit Report
The external auditor must ensure that the financial statements provided by the organization can be easily interpreted by the users, such that they are presented in a comprehensive yet reasonable manner. The economical assessment report mirrors the accurate picture of the company’s financials & operations and states the company’s actual financial health.
A typical external economical assessment attests to and confirms the fairness of the organization’s financial reporting. It also provides recommendations on the flaws and gaps in the accounting, compliance, and operating procedures. Therefore, the final economical assessment report submitted by the external auditor comprises various methodologies, recommendations, and opinions on improving internal control procedures of the organization.
A Typical External Audit Report May Contain:
- An Unqualified opinion is the most favorable opinion an external auditor mentions. It means that the company provided all the requested information by the auditor, and the economical statements and the company’s operations and compliance have met all the financial assessment requirements.
- A Qualified opinion: When most of the company’s transactions and compliance are in order, except for a few, the external account examiner points out.
- Explanatory Paragraph: For an explanation required regarding certain transactions in the reporting, the account examiner adds a descriptive paragraph.
An Adverse Opinion: This reflects a negative assessment of the company’s financial reporting and compliance. An adverse opinion indicates that numerous anomalies were found during the financial assessment, and the external auditor could not satisfactorily complete the audit due to operational or cash flow inaccuracies.
- A Disclaimer: The auditor is entitled to report any deficiencies in the company’s financial reporting practices. If the company fails to provide sufficient information, and significant gaps exist in its financial and operational procedures, the auditor may issue a disclaimer.
Partner With Farahat and Co for Your External Audit Compliance
When selecting an audit firm in Dubai or the UAE, a business may have many concerns. However, with decades of expertise and Middle East business experience, Farahat and Co. are the leaders in statutory audits in Dubai.
Our multidisciplinary external account examiner are highly qualified Certified Public Accountants in Dubai and Chartered Accountants trained to work independently with organizations of every type in the UAE.
Bringing You the Right Audit Team
For executing your financial assessment plan, we ensure that a multidisciplinary team is in place that can understand complex transactions using the latest industry standards. We believe in tailored services and provide you with our subject matter experts, who have experience working in the UAE and the Middle East. Auditors on our team have experience with the Middle East and worldwide industry insights.
We Invest in Technology
Farahat and Co. are on track with the latest digital technology and provide the correct exposure and the latest tools available. We are consistent with our approach, and our investment in technology helps our team to provide better insights into a company’s risks, failures, and opportunities. We invest in training our staff so they bring out their brightest self during third-party audit engagements.
Accuracy and Efficiency
Farahat and Co. have been known for their undoubtedly accurate third-party audit methodologies and comprehensive understanding of businesses in the Middle East for several decades. We have always held the value of transparency in our economical assessment engagements through confident and accurate reporting on your business information.
