The government or authorities frequently demand an audit of the business to make sure that the financial records are accurate. This is referred to as a Statutory Audit. All the documents, including the bank balance, the bookkeeping record, and all financial transactions for the company are taken into account in this form of an audit. Statutory auditors in Abu Dhabi are required to provide the government/concerned authorities with the audit report for them to comprehend that there has been no fraudulent activity at the company. The auditor also has to determine the accurate profit and the taxes that are owed to the government. As statutory audits are required by statute or law, it must be carried out by expert statutory audit services in Abu Dhabi who are familiar with the governing bodies' principles.
A statutory audit doesn't mean that you are guilty or you have done something wrong. It is normally done to avert several wrongdoings like exploitation of your company funds by routinely examining the records by third-party statutory auditors in Abu Dhabi.
In the UAE, companies in the Mainland need to be compulsorily audited, whereas the auditing in Freezone companies generally depends on the regulations of the particular free zones.
Before a statutory audit can begin, a company must have the following papers:
Info on fixed assets, bank statements that show transactions, and details about cash receipts and payments
Details about secured and unsecured loans and advances Trade Payables & Receivables
Both domestic and foreign purchases
Information about local and international sales
Information on selling, administrative, and inventory costs
Information on foreign exchange revenues and expenses
Statutory fees and other assessments
At GAAP Associates, our statutory auditing team is comprised of skilled experts to efficiently carry out the statutory auditing process. Our statutory auditors conducts audits by numerous global accounting and auditing standards to provide fair and accurate audits for different stakeholders, including the government, banks, financial institutions, the general public, and investors. To learn more about our statutory audit services in Abu Dhabi, get in touch with GAAP Associates.
Any company that satisfies the requirements outlined by the auditing authority is eligible to undertake a statutory audit. If a statutory audit is required by law or has been declared necessary by a particular body, management also could carry it out. Any business that complies with the necessary legislation or satisfies a requirement may conduct it.
A statutory audit is conducted to ascertain if a company gives the public a fair and accurate picture of its financial situation.
Regardless of the type of business or volume of sales, all UAE companies must assign Statutory Auditors.
The statutory audit falls under external audit. It is carried out by a practising chartered accountant who has no affiliation with the business being audited.