Best Financial Statements Audit Provider In Dubai
Why should a Business avail Audit Service?
Many people think that their business does not require a financial audit as the business is small or because they may feel that conducting an audit is a waste of time and money. This is a misconception among people, and the management would take care that the financial Audit of a company is being conducted at regular intervals as the benefits outweigh the disadvantages.
It should be kept in mind that that only registered auditors or approved auditors can conduct Audit of a Company.
The Audit of a company does take up the company’s time and resources, and it is even possible that the company may have to stop working for a while. Still, the advantages of a financial audit far outweigh the problems caused to a business due to it. Some of the benefits of a Financial Audit of a company are mentioned below.
To know more about the free zones in which AAA Chartered Accountants have approved auditors, refer to the Approved Auditor and Accounting Services page.
Benefits of Financial Audit
The Middle East is considered a very lucrative place to set up a business. Setting up a company here will help a lot in acquiring new customers and will help in expanding the business into new markets. The Middle East countries’ government has also understood the importance of Foreign Direct Investment (FDI) and have taken many steps to welcome foreign businesses into the country.
Every company in the United Arab Emirates must prepare an audit report. Many jurisdictions in the country do not have a requirement of submitting such reports to the concerned authority, but it is recommended that every business should prepare an audit report of the business.
Here are some of the advantages of conducting a Financial Audit:
- An Audit helps in Compliance and detecting if any fraudulent activity is being performed in the company.
- An audit helps in the preparation of the Audit report, which will, in turn, assist in filing for VAT, Insurance purposes, etc.
- An Audit helps determine the company’s present financial condition and helps to make decisions that will affect the company’s future.
- An audit will help the company to gain more credit by enhancing the confidence of the investors.
- A financial audit will not only assist the company in its survival and maintenance but will also help during the liquidation of a company.
What is the Difference between Audit and Investigation?
There is a subtle difference between Conducting the Audit of a Company and the Investigation of a company.
An audit is usually conducted to understand the authenticity/correctness of the financial statements. It can be understood as an examination to confirm whether the financial statements give a true and fair view of the operations of the Company.
Once the Audit is finished and if any discrepancy is found, then an investigation is conducted. An investigation is a detailed scrutiny of the transactions and process and helps the management to understand if there was fraud or misconduct or if there’s a better way to conduct the process. It also helps in decreasing the wastage of resources and benefits find out new and innovative ways to conduct the process.
An investigation has no fixed duration and can take a longer time in comparison to an Audit. An audit depends on the size and nature of the company. The investigation can be conducted by the owner of the business or a third party. Still, an audit cannot be undertaken by the owner and has to be always conducted by an external third party which is appointed by the owner.