If you operate or are planning to start a business in Dubai, then you should know that the UAE has many important regulations in place which must be followed. Not complying with these essential standards can result in hefty fines, or worse, can even result in having your business shut down by government authorities. One important requirement is that you maintain accurate financial accounting for your business that’s truthful, transparent, and free of any error or fraud. To that end, contracting with a professional audit services provider like MSZ Consultancy can help ensure the accuracy of all your required financial reporting.
Auditing is an independent examination of financial statements to verify the accuracy of the data presented, and to prevent any unwanted incidences of errors or unintentional fraud. A third-party assurance of your financial statements adds confidence for your upper management, assuring them that reports are accurate and free of any misstatements, enabling them to make better data-driven business decisions. In addition, a business audit can also help make sure that you’re in compliance with all UAE business standards and requirements.
Your business leadership needs to be informed regarding costs & spending as it relates to your specific budget allocations. Data provided by an audit can also be useful for helping businesses and individual departments to set future budgets.
Auditing helps ensure that financial statements are being prepared in accordance with set financial standards and regulations in Dubai and the UAE.
Having audit information in hand serves to enhance your business credibility in terms of making future investments to expand your market share.
A third-party audit can help to uncover any financial discrepancies – or even potential fraud – by revealing any errors of omission or willful commission.
Auditing also provides necessary evidence and documentation concerning transactions and cash flow matters.
A small business audit or other company financial audit can be conducted for one of many reasons, but audits generally fall into one of two major categories: internal and external. Here’s a brief synopsis of each:
An internal audit is performed by a group of auditors appointed by the company to take a closer look at how internal business operations are conducted as it concerns matters of finance, budgeting, and spending. The auditors entrusted with this task should have a thorough understanding of the inner workings of your business environment, along with any finance-related processes. For this reason, some businesses are more comfortable having an internal audit conducted by internal parties, but if you have no staff or system in place for taking on such a task, you can also entrust the job to a reliable outside auditing professional.
While an internal audit can be conducted internally by your own team of employees, an external audit is performed by an external auditor or auditing provider approved by your company’s shareholders. While an internal audit certainly has value, it can also be more prone to display some internal bias, whether intentionally or unintentionally. An external audit, on the other hand, offers a truly objective, unbiased, and accurate assessment of the financial status and overall financial health of your company. In addition, having regular external audits conducted is a mandatory requirement for all businesses registered to operate legally inside the UAE.
There are several reasons why you’d want to have an internal audit conducted for your company. Here are a few specific benefits of internal auditing:
So, what’s the point of an external audit, then? Choosing to partner with a professional external audit services provider like MSZ Consultancy allows you to gain a better objective understanding of the financial position of your business, among other benefits:
An external audit is actually a mandatory requirement for any business establishment registered in Dubai or the greater UAE.
Essentially, finding the right company financial audit service ensures that the way you manage your business finances is congruent with your company’s principles & goals, and also conforms with regulatory requirements established by Dubai and the UAE.
Interested in looking closer at what a business audit provided by MSZ Consultancy entails? Here are some key steps of the process: