All organizations around the globe from small to large all businesses must pay taxes to the Government. Before UAE was a tax-free country but from 2018, UAE introduced excise tax and VAT tax to all the commodities sold and services provided in the country. Government aim is to get an additional revenue apart from oil which they can use for the development of public infrastructure. Like all other places, Dubai also has some definite laws and regulations for businesses and corporations running within the country when it comes to taxation. To help you get a far better understanding of how audits work, how they benefit your business, and why they’re important, we’ve prepared a helpful guide that provides you all the knowledge you would like to learn about the auditing process and how Audit Firms in Dubai helps you with better auditing.
Why auditing is required?
Auditing is important to every company because auditing ensures the business’s financial records are accurate, and is in accordance with applicable rules, regulations, and laws. Auditing is a process performed by the auditors to research the correctness of the business’s financial records and they will make required alterations in order to make it comply with the rules. An audit is important because it will in turn earn credibility and provides the shareholders confidence that the accounts are true and fair. It also can help to enhance a company’s internal controls and systems.
A company can appoint an auditor as their employee, which is usually termed as internal auditor. But it is mandatory to verify the financial records of the company with an external Auditors in Dubai in order to make sure the financial records are in accordance with the law, public companies also need to verify their financial statements from an external auditor. An internal auditor is responsible to look at the interior records and help them to enhance the internal processes like operations, internal controls, risk management, and governance.
How auditing firms help companies to prepare for annual auditing?
The auditor will study the company’s priorities in order to make a strong audit plan. Audit planning is one among the primary and a key step within the process of external auditing. The management must prepare an inventory of all the financial transactions and submit them to the auditing firm beforehand. Submitting the list of financial records beforehand will give the auditing firm enough time to review the activities and gets enough time to clarify the doubts. They can study how changes have affected the companies growth by comparing with the previous years statements.
The management of the corporate must organise and streamline their data with proper clear recording so the auditing process will be easier for the auditor. The auditor should not spend time on recording and clearing the irregularities in the data at the time auditing which will make the auditing more complex and it will be time-consuming. Nowadays with the advancement of technology and storage systems, the businesses can track all the main documents in real-time. These techniques will help the businesses easily access the documents required during the audit and can be useful for audits within the upcoming years. Using efficient software will reduce the time the management must spend with the auditor and therefore the audit might be conducted quickly.
Audit Firms in Dubai
Auditing is extremely important and investing in the Auditing service is usually fruitful for the business. Experience of Auditor matters also because with his/her innovative auditing services, he/she can assist you find the important account issues quickly which directly helps you find the liability. Experienced auditors with deep knowledge and skills can help improve business profits with their auditing services. Trust-building is the major advantage with auditing. It takes time to build trust with your clients and shareholders. Better auditing helps to establish a good relationship with them.
Companies need not stress out during auditing season if all the financial records and documents related to it is accurate and recorded correctly. Auditors make sure your financial records are free of mess and irregularities and help enhance their business growth.
In order to keep the financial record efficiently, you need to start accounting and bookkeeping early and before auditing starts. Choosing the Best Accounting Firm in Dubai will ease the burden of auditing off the shoulders of the companies