An external audit in Dubai is a comprehensive examination of a company's financial records conducted by an independent third party with no affiliations to the company. This ensures that the external auditors in Dubai produce an impartial audit report without any influence from the company and without time constraints.
Stakeholders can rely on the accuracy of the company's financial statements through the support of external audits. External auditors, being impartial experts, analyze the financial condition and operational methods of the company. External audit services enhance credibility and mitigate the risk of fraudulent accounting entries. The external audit procedure is outlined below.
Why Do You Need External Audit Services in Dubai?
Internal auditors, mainly appointed by the company for internal control and risk management, differ from external auditors, who work for external audit firms and provide independent opinions on financial statements.
• Appointment of the Auditor
The selected auditor should have no ties to the organization's business affairs. The audit committee, based on specific criteria, chooses either an individual or a group. The appointment receives approval from the board of directors and shareholders. After the appointment, auditors in Dubai ensure their independence before confirming their engagement with the business.
• Audit Engagement
An agreement is drafted between the auditor and the business, covering the audit objectives, auditor's independence, audit fees, obligations of each party, and the scope of work.
• Audit Execution
The external auditor initiates the audit process by creating an audit plan, setting deadlines for each segment and an overall completion date. The auditor then prepares the audit program for implementation.
• Collection of Evidence
Compelling evidence is crucial to substantiate the auditor's assessment while preparing the audit report.
• Audit Report
The audit report presentation relies on persuasive evidence to support the auditor's assessment. Ensuring compliance with regulations and laws is as important as following best practices and meeting business goals. Every corporate organization in Dubai, irrespective of size, requires external audit services to meet government and regulatory requirements. Audit firms play a critical role in determining the financial worth and position of the firm.