7 Ways Audit Firms in Dubai Help A Business Prepare for Auditing
Getting the books of accounts audited by a reputed auditing firm in Dubai, UAE helps the companies reassure the stakeholders that the financial statements are free from material misstatements and misrepresentation. The external audit helps the businesses enhance their reputation by reassuring that the financial statements represent a true and fair picture of the business. Hiring the best auditing firms in Dubai will ensure that all stages of the auditing process including the audit plan, and test controls are done efficiently and without delay. However, the management of the company needs to prepare well in advance to help the external auditors execute the task. The companies need to organise every relevant document and ensure that all the internal processes are in place before the auditor visits the firm.
The following tips could be useful for the businesses to properly prepare for the annual audit:
1. Set and Discuss the Priorities
Audit planning is one of the first and a key step in the process of external auditing and the auditor needs to learn about the company’s priorities to design a robust audit plan. The management needs to prepare a list of the important annual activities and submit them to the auditing firm in advance. Submitting the list of activities in advance will give the auditing firm the much needed time to review the activities and priorities of the company and ask the right questions. The auditing firm will discuss how the changes in the previous year will affect the audit. Based on these reviews and discussions the external auditor will design the audit plan and provides solutions to address the priorities in the plan.
2. Organise and Track Data
The management of the company needs to organise and streamline their data to make the auditing process easier for the auditor. The auditor should not spend much time in locating the key financial data and documents which will affect the smooth conduct of the audit process. With the help of advanced storage systems, the companies can track all the major documents in real-time. Software like Huddle or Sharepoint could be used to store and track all the financial data of the businesses. Such methods will help the companies easily access the documents required for an audit anytime and will be useful for audits in the upcoming years. Using efficient software will reduce the time the management needs to spend with the auditor and the audit could be conducted quickly.
3. Participate in Meeting
The auditor and the client engage in a meeting, which gives the later a chance to talk about the company’s needs, details from the previous year’s audit and the expectations from the current year’s audit. Before this crucial meeting, the management can help the auditor create an agenda which will give a proper structure for this meeting. The meeting can discuss the activities and transactions of the present year, questions about the previous audit, how to implement recommendations from the previous audit, the company’s response to previous year’s management letter and internal control report etc.
4. Prepare the Staff
The audit process often requires the external auditor to work in collaboration with the employees of the client company. The staff would have to communicate with the auditor throughout the process. The companies need to prepare the staff for the audit well in advance so that the day-to-day operations of the company wouldn’t be affected while the external auditor visits the company.
The management can avoid the loss of productivity by preparing the staff for assisting the auditor during the audit time. The communication with the auditor should be made part of the workload and special schedules can be created for the staff to facilitate smooth staff-auditor communication.
5. Plan for Testing of Controls
Testing of the internal controls is a core step in the audit procedure. The companies can go through the relevant internal processes that the auditor will examine during the audit process. The companies need to ensure that all the controls required by the standards are in place.
6. Gather Documentation for your Procedures
Ensuring that all the internal procedures are in place is essential but the companies will also need to provide supporting documents for the audit process. The auditor will ask for policy documents, financial statements, and other essential documents. The management needs to prepare a list of all the documents that shows the current internal controls and also need to review them. This review will make ensure that whether the documentation is accurate.
7. External Confirmations
During the audit process, the auditor requires various external confirmations like from bank, debtors, creditors, related parties etc., which can take a long time and can hold the audit process itself. The management needs to co-ordinate with the auditor for such confirmations so that they are received in time so that the time of the auditor and the management is saved and the audit process goes smoothly.
Why Choose Jitendra Chartered Accountants?
Though auditing is a regulatory requirement in the UAE, the companies need not stress out during the audit season if all the documents and the financial data are in order. Having the books of accounts audited will only help the businesses in enhancing their business growth by reassuring the authorities, stakeholders and even the banks that the financial statements are free from irregularities. This calls the need for the audit process to be done efficiently and the companies should prepare well in advance before the audit firm starts the audit. Choosing the best auditing firm in the UAE will ease the burden off the shoulders of the companies during the time of auditing.
Jitendra Chartered Accountants (JCA) is one of the best auditing firm in Dubai, UAE with commendable experience in helping out plenty of companies with their auditing requirements. JCA’s highly qualified Chartered Accountants will ensure that the company’s financial statements comply with local and international regulations. JCA is a one-stop solution for all the services including accounting, auditing and VAT-related services. JCA is committed to providing high-end business advises to the clients thereby helping them set robust business goals.