External audit in Dubai
An external audit is an independent review of financial documents carried out on a regular basis to ensure accuracy and transparency. It improves the compliance of financial statements with standards. The external audit is organized to verify the accuracy of the financial statements and the financial position of the company. In Dubai, an external auditor is a professional and independent third party who carries out an objective review of a company’s accounting records. The auditor examines the financial assets to identify irregularities.
The External Audit Services In Dubai provides information on the financial performance of the company in a competitive market. External auditors review their work impartially and produce very detailed reports. External audits ensure the completeness and accuracy of accounting records in the accounting system to eliminate errors, fraud, and misstatements. CDA provides comprehensive external audit services in Dubai and throughout the UAE and assists private companies and government bodies in reviewing accounting records.
External Audit Procedures
The external audit process involves several steps, from the appointment of the auditor to the submission of reports. The following describes the stages of Dubai’s external audit process.
Appointment of the auditor:
A licensed independent auditor is appointed to conduct the external audit. It is advisable to appoint a person who is not a member of the firm. The company’s shareholders select the auditor on the basis of knowledge, competence, and experience at annual general meetings under their supervision.
Acceptance of the engagement letter:
The auditor shall confirm in the engagement letter that he accepts the engagement. The scope of work and responsibilities are clearly defined.
At this stage, the auditor collects, evaluates, and interprets data in order to better understand it. The auditor identifies and assesses risks and proposes actions. Includes:
Gathering information about the company and its operations.
Determine whether the entity has complied in good faith with International Financial Reporting Standards (IFRS) as required by the Financial Accounting Foundation.
Verify the validity of the entity’s financial documents.
Review the entity’s books of accounts, payroll, and purchase documents.
to check for inaccuracies in records due to errors, fraud, or falsification.
Collection of evidence:
Collect evidence to improve materiality and confirm compliance with accounting principles and standards and verify assets.
After a thorough review, the auditor presents the audit report to management and expresses a qualified opinion on the future of the organization.
Documentation required for the external audit
In order to prepare an accurate and independent audit report, the external auditor normally needs the following documents
Details of the fixed assets acquired.
This includes invoices and receipts. These help the auditor to prepare an accurate balance sheet and other relevant financial documents.
Bank account details
External auditors need detailed information on the company’s banking transactions. They should have the name of the company written on them.
Details of payment accounts
Details of payroll reports help auditors understand the company’s tax liabilities, expenses and salaries.
Information on loans to companies
These documents will help the auditor to accurately identify payment risks.
Accounting books and trial balance
External auditors require a general ledger and a trial balance at the initial stage of the audit to check debit and credit balances.
Why do organizations hire external auditors in Dubai?
An external audit is mandatory for all companies registered in the UAE. It is an important document as it is processed in accordance with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). It can be used as an important financial document when you want to renew a license, obtain a loan, etc. Given the new introduction of VAT in the UAE, an external audit report enhances the credibility of a company’s financial report.
As an independent audit report, it helps investors or third parties in the company to determine whether there is fraud or error in the internal financial statements. With an external audit in Dubai, you can increase the credibility of your company’s financial statements. The main reasons for hiring external auditors in Dubai are:
An unbiased assessment of the company’s financial position.
Accurate information that the company needs to assess its performance.
Security and reassurance to companies that their data and the way they do business is trustworthy.
Reducing the risks caused by inadequate financial data.
The uniqueness of CDA
CDA experts are trained and certified experts in assessing and facilitating the business process to mitigate the risks caused by inadequate financial data. As they are not part of the company, they provide an unbiased audit report. Our services include:
Assurance: we provide relevant and valuable insight into the data that dominates the business. Through our audit procedures, we assure companies that their documentation and the way they do business are legal.
Validation: our team confirms that the financial reports prepared by the company are convincing and accurate. This confirms the company’s financial position and attracts additional funding.
Integrity: This is an added advantage for the company, as the public and the authorities will get the impression that the company is a certified and unwavering organization in the market.
Avoidance of errors: our experts are more accurate and the possibility of errors in the preparation of the company’s accounts is minimized. This allows the company to make informed decisions about the future of the business and not repeat them.
Limiting fraud: There is no guarantee that a company’s internal audit is free from errors and misleading information. This leads to fraud and money laundering. An external audit carried out by our experts will prevent such irregularities in the company.
Providing solutions and impartial recommendations: the CDA experts are a team of qualified, competent, and certified auditors. Therefore, they provide reliable and impartial solutions for the benefit of the company and its progress.
Why choose CDA for your external audit in Dubai?
CDA is a team of experienced, competent and certified accountants who are proficient in external auditing. Our external auditors provide consistent and seamless solutions for the benefit of your business and its progress. CDA’s external audit services are tailored to meet client requirements and comply with UAE audit legislation. We provide your business with legitimate results that help maintain a better position in a competitive market.
Our team has experience from Big4 audit firms and leading audit firms in Dubai. The team has a wealth of experience across a variety of industries. Our in-house team, who work as CFOs in various multinational companies, will also assist us in decision making. In addition to external audit services in Dubai and the UAE, CDA also offers business strategy and CFO services, accounting services, audit and review services, tax advisory, accounting software implementation and due diligence audit services.
If you need assistance with external audit in Dubai, please contact us. Our professional accountant will call you right away and help you get the best external audit in Dubai for your business.