Essential Cycle of Audit Process for Businesses in Dubai
Businesses are all about money, and so the business people should be able to handle financial affairs carefully. For this purpose, the companies are required to ensure comprehensive bookkeeping of all their transactions. However, this is not enough because the business in Dubai should be prepared for audits by going through a rigorous process.
Basically, an audit is the financial statement of the business that if the company is following the accounting principles and standards while dealing with monetary operations. The commented of the auditors are evaluated under set rules to determine the financial status of the company.
The article is aimed at highlighting the major process of preparing for the audit for the businesses based in UAE particularly.
Why is Audit Important?
Nevertheless, an audit is part and parcel of every business that is in the running condition. It is comprised of the documents that the banks, financial borrowing institutions, investors and state authorities consider while making any decision regarding the business.
Therefore, the business owners should be pro-active towards maintaining their records to ensure transparency and accuracy of the company’s resources management. Besides this, the businesses are required to prepare for audit as it is mandatory by the government of UAE.
So, the business people usually prefer acquiring third party services of the top audit firms in Dubai for ensuring compliance with accounting standards. The reason for hiring experienced professionals from the industry is exposure and diversity of knowledge.
However, the business owners should also have some basic understanding of the cycle that needs to be completed for the audit process. So, scroll the till the end and become a knowledgeable person in audit things!
Primary steps of Financial Audit Process for business in Dubai
There is no denying that the financial audit of the company is actually the evaluation company’s monetary reports and financial statements. The companies are required to maintain the reports for the past five years. Here are given the basic steps that every company should take out for successful audits:
Step # 1 – Comprehensive Planning
The first and foremost important task to be accomplished by the companies is to plan for the process. The planning significantly depends on the number of departments and the size of the company.
It is imperative to understand that the planning phase primarily comprised of a thorough study of the business, present departments, business nature, financial management procedures, and potential mistakes in bookkeeping.
Step # 2 – Audit Tests for Finances
After the successful completion of the planning process, the next task that companies should focus on is the testing of the financials for a comprehensive audit. The businesses are required to re-check and review the invoices, clarify the expenses and estimate the accuracy of suppliers and vendors for financial estimation.
The organizations should base their financial tests of the defined criterion for an optimized financial assessment. Classification of resources is one of the top-most essentials of audit tests.
Step # 3 – In-Depth Analysis of Accounts
The third step of audit process preparation is the analysis of the business accounts. It has been observed that various small businesses overlook the importance of thoroughly looking for the bank account and other financial repositories for the sake of cross-checking their revenues and profitability.
The business people should focus more on document analysis and matching the statistics with the financial registers and bookkeeping journals to avoid duplication and errors in the record.
Step # 4 – Audit Report Preparation
Last but not least, the audit process cycle includes the phase of report preparation. It requires the business people to comply with the set standards by the state to eliminate the risks of misleading statistics. The accuracy of financial statements based on the successful completion of this phase.
So, it is suggested to be vigilant about the main points of bookkeeping, the accounting data, and international regulations for accomplishing the report. For this reason, you may also seek the services of top audit firms in Dubai for coming up with detailed and comprehensive audit report documents.
Comply with the audit process for business success!
Summing up, an audit is an integral part of every business organization. With better preparation, the companies can nail the process for higher transparency and standardization.
Don’t forget; the report is going to be submitted to higher authorities after completion. So, be professional and pay attention to the detail in order to eliminate mistakes and improve the quality of the audit process. It will lead your business to the ultimate success!