An external audit in Dubai is a regular examination of processes performed by certified auditors, that aren’t part of the audit of the company. This helps the government and the company to scrutinize the accounting documents. The external audit may be done voluntarily or non-voluntarily by an outsider. An external audit is designed to examine the precision of statements and financial states of an organization.
An external auditor is an expert and an independent third party who conducts an impartial review of a fixed company’s financial records. The auditor should assess the record of an organization, involving payroll, buying records, and accounting. She/he looks on the investment of financial and organization debt structure for identifying any kinds of irregularities.
External Audit Process
- Auditor Appointment – the independent auditor is appointed for the external audit. Hire somebody that is an outsider to the organization is appropriate. The company’s shareholders choose the auditor on the basis of skill, competence, and experience in general meetings.
- Accepting The Project – The auditors by the letter about their appointment acceptance. The scope of the task and responsibilities are clearly outlined.
- Audit Program – in this stage, all data of a company is evaluated by the auditor.
- Collection Of Evidence – Evidence gathering to increase materiality and confirm adherence with policies of accounting, and verify the assets.
- Report submission – The audit report is ready and submit by the auditor.
Benefits Of An External Audit
- Comprehensive Report: The performance of the company’s overall operations is presented in the external audit report. An external auditor likewise ensures that the information accuracy in the accounts books is unavoidable. This would help management to consider action towards any wrong procedure which would be found in the report.
- Identify The Weakness: The external auditor does work on all methods and controls the organization’s environment. By external audit, weakness within the organization, particularly accounting systems, that being recognized. Along with this, an external auditor would create recommendations as to how to create a business very efficient and less risky of fraud.
- Confirm With The Law: the external auditor does work on the account books of the organization, ensuring that they are following the laws and regulations of the respective authority. Likewise, they would ensure that the company’s accountants are updated with the same laws and regulations of the respective authority and government.
- Save Time And Resources: with the external auditor report’s help, the organization’s irrelevance can only be ascertained, and through it, this would become easier to find out where the task in particular needs improvement. Due to this, time and resources will be less likely to be wasted.
- Unbiased: the external auditor has no direct connection to anyone within the organization. The audit report would be unbiased or impartial.
Need For An External Audit
The external audit is mandatory for all registered companies in the United Arab Emirates. The compulsory adherence to International Financial Reporting Standards made an external audit report an important document. The report of an external audit work like a definite financial document at the license renewal period, obtaining a loan, etc.
Our External Audit Services In Dubai
Taskmaster is a top-rated consultancy in Dubai. We provide the best business services to our clients such as involving accounting, and management, and auditing software. Taskmaster offers the best audit services in Dubai. At Taskmaster, we follow an accurate and proven approach to make sure that each item needed for the scrutiny and verification of the financial records is properly confirmed.
We analysis of business performance against predefined management objectives. Examine the accounting records and other evidence that supporting the statement of finance. Assessing business risks and offer relative suggestions.