Auditing becomes an essential part of the life of businesses or organizations. Entire businesses and organizations of the world conduct the auditing. Some businesses and owners only conduct the auditing when they require potential investors, industry regulations, other stakeholders require one. Well, Auditing of the Business is very important to detect and prevent fraud, Mistakes, illegal activity. In simple words, Auditing means to review the business activity, compliance, control over the business, etc, and give the suggestion to make business or organization work effectively and efficiently.

Many business owners think that auditing of the business is wasting time, money, and resources because they don’t know the importance of auditing and benefits after the auditing. Well, business auditing is very beneficial for the business. Here is the importance of the business:-

1. Enhancement In controlling -  A qualified auditor audits the work of the business organization to check how it’s doing and if there any loophole, errors, risk area, fraud, etc. what if auditors found any mistakes, frauds they mention in the auditing report along with the suggestion. Based on the audit report, business management takes action to prevent frauds, mistakes, risks and make new decisions to make work more effective and efficient to achieve the business goal.
   
   
2. Transparent Financial Report  -  It is especially important for those that are looking for an investment to expand and merge with another company. Auditing identifies the unknown area of risk and errors.
   Bank’s, stakeholders,s and other financial institutes ask the financial statement of the business. If your business financial statement is audited by a qualified and independent auditor so it increases the 90% chance to get investment quickly. Because an audited financial statement is more reliable in comparison to an unaudited financial statement. 
   
   
3. Planning -  Auditors check the accuracy of each transaction by analyzing the financial statement. It's a detailed process and presents the clear value of the assets, income, expenditure, and liabilities.  It can be used by the owners to make future decisions for financial planning, budgeting, and financial decisions.
   
   
4. Rules And Regulation - While auditing if the auditor found that the work in the organization is not done as per set government rules and regulation or need to applied new government rules and regulation. Then the auditor suggests the rules and regulations to apply in business for better results and legal action against the business by the government.
   
   
5. Insurance - When a business does a claim from the insurance company, the Insurance company audits the business to determine the value of the damage and then pays the amount.
   
   
6. Detection of frauds - It's a major reason for business auditing. The auditor compares the accuracy of each financial transaction with the financial book. By doing this auditor check the all transaction has been recorded as per accounting principle and the main thing is that they can detect the fraud in the organization. It’s the obligation of the auditors to provide the suggestion and recommendation action in order to prevent fraud.
   
   
7. Helpful In Future Planning - Every business owner wants to grow their business year after year.  To do effective planning and make decisions, Accurate value of the business finance is required. The auditing provides the full insight of the business finance that is very helpful for business owners in future planning and decisions.
   
   
8. Proper Evaluation  Of Investment - Business invests money in various sources. Auditing provides the proper valuation regarding all investments of the business. Auditing provides the exact value of the profit and loss from the investment and most important current & future risk from the investment.
   
   
9. Valuation of the Assets - In audit ensure the value of the assets after the assets verification. The auditors verify the current value of the assets is recorded in the balance sheet or not.
   
   
10. Profit and Loss -  Financial audit gives a summary of all work that is very helpful to determine the exact reason for the profit and loss. It’s essential for a business owner to enhance the business strength and generate more profit.

There are plenty of benefits that the company can avail by the auditing. We hope the above mentioned point will clear the importance of auditing. If you have any query and doubt feel free to contact us to get a business auditing consultant from the best top auditors players in Dubai.

If you are searching to get the best auditing firm in dubai. So, you can get the service from the risians accounting and auditing firm in dubai. Risians is one of the most trusted and reputed accounting firms in Dubai, which can take care of your business accounting and auditing. Risians also offers the service such as VAT & excise tax service, Business consultant service, UBO (ultimate beneficial ownership), Tax Consultant service, free zone business set up service, business set up service. Contact risians Accounting it would be our pleasure to help you in your business growth.

How To Register For Excise Tax In UAE?

Excise tax is an internal tax that is applied on several products that are harmful to health and the environment, such as alcohol, fuel, tobacco, and carbonated products. Excise tax is not paid by the customers directly, It’s paid by the manufacturer and wholesaler and they add the price to the product. So it’s clear, the Excise tax is an indirect tax. For maintaining a healthy standard environment in the country, UAE rolled out the excise tax system in the entire UAE. From Dec. 2019, the UAE government levied the excise tax on all kinds of e-cigarettes, e-liquids used in e-cigarettes, e-cigarettes devices, and sweetened drinks.

How to Consider that Excise Tax is Applied On Our Products?

1. Tobacco products - If you  Business deal in any kind tobacco products.
2. Tobacco - Business deal and produce the tobacco.
3. Energy Drinks - Sweetened drinks that are sold in the market. The excise tax applies to all kinds of drinks that contain stimulant substances that provoke mentally and physically.  Also apply on these drinks which have caffeine, taurine, ginseng, and guarana. And any other product that makes carbonated drinks like powder, gel, etc.
4. Carbonated Drinks - Drinks that contain aerated except the unflavoured water. And any other product that makes carbonated drinks like powder, gel, etc.
5. Tobacco Device and Tool -  From Which People can consume e-cigarettes and other smoking products.
6. Import Business -  If anyone imports any kind of products that are harmful to human health and environments like tobacco, carbonated products, e-cigarettes, e-cigarettes devices, and tools, etc. 

How to Register For Excise Tax in Dubai?

Excise Tax Registration is Mandatory for business under the  UAE federal decree law No. 7 of 2017 on Excise Tax.  If any corporates have been involved and to be involved in above mention products listed must be registered and have an excise tax account.

Business can be registered for excise online by follow the following steps:-

Step:1 -  You have to visit the official site of the Federal tax authority. Here is a link. 

After clicking on a link, you will see this screen.

Step:2 -  Before registration of excise tax, You have to login into the federal tax authority e-service account. If you are not registered here is a link for registration.

The FTA e-service registration page appears like the above image.

Step:3 -   After login into your e-service account, you will see the button which is inviting you for excise tax registration. 

After Clicked you will see the short guide. The short guide makes you understand the important requirements for the registration. After completing the short guide Click on the confirm to do the next step.

Step:4 -  After the confirmed guide, you have to fill the registration form. And you will get there two buttons.

1. Save as Draft - You can Draft your form. 
2. Save and review - You can check that the form has been filled properly.

Note: Maybe you will be logged out after  10 minutes automatically if you don’t do any activity.

Step:5 - You just have to hit on the submit for approval button. Great, your excise registration form has been submitted successfully for review.

Step:6 -  In this step, you will check the registration status. Click on the Dashboard button and look at the status.

1. Drafted - It means your form either has not been submitted or completed.
2. Rejected - Your registration has been rejected.
3. Pending  - It means your registration still is under review.
4. Approved - Congratulations, you have successfully registered for excise tax.

Step: 7 - If your registration is failed due to late registration. Then you have to pay the late plenty charge, The late plenty charge is 20,000 AED. To check the plenty charge and make a payment follow these following steps:

1. Visit your dashboard, there you will see the “late registration penalty”. Under the Excise tax box, you can see the late payment charge. Click on the “Pay Now” button to make the payment.
2. After clicking on the pay now button you will redirect to the E-dirham payment gateway page. There you make the payment of the late registration.
3. You can make the payment by the e-Dirham or credit card.
4. Once payment is done. You can check the translation history under my payment tab.

Required Documents for Excise Tax Registration.

1. Trade License.
2. Authorized signatory documents.
3. Details of the bank account.
4. Role of your business (importer, producer, and supplier).
5. Details of products in which you deal.
6. Copy of passport.
7. Emirates ID.
8. Incorporation Certificate (if Applicable).
9. Details of firm type, sole proprietorship, or partnership.
10. TRN registration number for excise tax in another GCC State.
11. Registration of custom authority. (If Applicable).
    

Risians Accounting Excise Tax Service and Advisory In Dubai.

Risians accounting is a reputed and trusted firm in dubai which offers accounting service in dubai. Risians Accounting is a team of certified accountants who has decades of working experience in different business industries and projects.  Risians accounting also has a specialized team for a tax consultant in Dubai, who can properly assist you with your excise tax and other various tax consultant services. Along with tax consultant service, risians accounting also offers accounting and bookkeeping, auditing and assurance, Business consultancy, organization consultancy, ESR services, and other accounting related services.

At risians accounting, we provide all types of accounting services under a roof and are passionate to deliver tailor-made strategies for 100% guaranteed business growth.

Why has the UAE Government Introduced the Excise Tax in Dubai?

To make a more healthy environment in the UAE. The UAE government introduced the excise tax on all kinds of harmful products for human health and the environment. The UAE Government wants that In UAE people don’t consume harmful commodities and also increase the government income that aid the UAE government to accomplish their vision. In the UAE consumers have to pay more money on the consumption of harmful commodities like tobacco, e-cigarettes, energy drinks, sweetened drinks, etc.

Rate Of Excise Tax in UAE.

1. On carbonated drinks 50% rate.
2. On tobaccos product 100% rate.
3. On energy drinks100% rate.
4. On electronic smoking devices 100% Rate.
5. On liquids used in such devices and tools 100% rate.
6. On any product with added sugar or other sweeteners 50% rate.

If you still have any confusion related to the excise tax and other tax or accounting, feel free to contact the risians accounting firm in dubai.

What Is an Internal Audit?

According to the Institutes of auditors, an internal audit is providing independent assurance on organization governance, internal control, and risk management. Let's take a short look at “governance”  - Governance is nothing but a manner of controlling and regulating the action. Governance means how the structures and hierarchies are defined in an organization. Where the structures and the hierarchies are not defined. Then how the organization is working whether the organization is efficiently and effectively accomplishing the determined objectives and goals. 

 Generally, an organization has people in the department who conduct the internal audit.  Those businesses that don’t have an auditors team have to hire the audit firm in Dubai. The internal audit provides the organization risks, how is the operation going? control environment, and applicable rules and regulations. The Audit Committee reports the internal audit report to the CEO or members of the board of directors. They take the action based on reports to make operations more effective and efficient, reduce organization risks, etc. In short internal audit refers to giving a review of the internal environment of the organization, departments of the organization.

The Objective of the internal audit is to find the loophole and weakness inside of the organization. So that they fixed quickly as soon as possible. Fast prevention protects from harm to the organization and its stakeholders. The internal Audit plays a vital role in the organization because organizations have multiple functions and processes. It helps in controlling whether the processes are strong enough to be ensuing with each other. Internal Audit helps to identify opportunities for improvement by reviewing the function of each department they helped to drive continual improvement by identifying better procedures and applying corrective actions. 

Objective of Internal Audit.

1. Review the System - The purpose of the internal audit is to review and check the accounting system, operational of the business. It finds the weak points, mistakes, eros, business strength, and also determines the advantages and disadvantages of the rules and regulation. It allows businesses to be more effective by taking action on errors and mistakes in the current ongoing year instead of waiting till the end of the year.
2. Assets Protection - Evaluation of the assets to consider the value of the assets and also have physical valuation verification. It also covers the sale and purchase of the assets.
   
   
3. Paper Control - Main object of an internal audit is to keep tight control of overall activities. Management is required authentication correctly recording each financial transaction.
   
   
4. Perfect Accounting System - To reduce fraud and mistakes. It checks the accounting system of the business and cross-checks each translation with the receipts, documents, etc.
   
   
5. Keep a Check on Errors - Generally, businesses find mistakes and errors in the accounting at the end of the year then they solve them in the next year. But in internal audits, mistakes and errors are solved immediately.
   
   
6. Detection of fraud - In this world, every business has an employee who makes frauds with business. Auditors check and keep an eye on every employee’s activities that make the detection of fraud much easier. 

How to Conduct an Internal Audit?

1. Identify the Area - Organization has many processes and departments. Every department and process is driven by the written rules and regulations. Every department does different work like accounting, production, management, sales, etc. So the auditors need to identify which department is required to first audit. We are not saying that we don’t need to audit the rest of the department. To audit every department is essential but we should start the audit from which we needed most.
   
   
2. How many times we have to audit? - It is not specified that we have to conduct the audit after a particular time.  Some departments need audits annually and some half-yearly and quarterly. Based on the department processes and performance we must conduct the audit.
   
   
3. Schedule Audit - To efficient and effective results, auditors should make an audit calendar based on the requirement. Consistently audits drive the business towards oriented goals.
   
   
4. Audit Alert - Give the notice to the department managers so that they can prepare the report and documents and they don’t feel threatened by the auditors.
   
   
5. Be prepared - Auditors should be prepared themself for auditing before auditing. Auditors should know the organization and government rules and regulations to perform effective audits.
   
   
6. Interview - Every employee is interviewed by the auditors. Ask them about the work, performance, how much we are away from oriented goals, etc.
   
   
7. Reporting - Easy readable and understandable reports should be created by the auditors so that management can take action based on the report. If auditors don’t create audit reports clear and easy to understand then management can’t understand the report. So, a report should be clear, clean, and understandable.
   
   

Benefits of Internal Audit.

1. Strong Control - Internal audit evaluates the internal environment of the organization. It helps in controlling and monitoring the production department, HR department, Sales Department, etc. It ensures that the implementation of work is well designed and work is going towards success.
   
   
2. Security - Internal audit ensures that people in the organization are performing their job well and No one is doing any fraud and illegal activity.
   
   
3. Reduce Risk - Internal audit identifies the risk area in the inner side of the organization, So that action is taken in advance to prevent the risk or reduce the risk.
   
   
4. Improvement in Compliance - With the help of an internal audit report we can be sure that current ongoing policy, rules, and regulation are appropriate. If the organization found any loophole or needs to add a new rule so they can make a policy change or add new.
   
   

When does a business need an internal audit?

1. Before business investment - If you need investment for business growth, so before asking investors and banks. You should get conducted the internal audit because every investor must ask for financial reports and some exceptional cases other reports as well. 
   
   
2. Identify the Mistakes and Weak Points - If You found any kind of mistake, errors, etc. Then internal audits must take place in the organization so that we can find the root of mistakes and errors and rectify them. Via internal audit, you can take everything on track and make your business performance more effective.
   
   
3. Cast Flow Statement problem - If a business is generating sales but you don’t have enough money to pay bills.  It means that your business has Inefficiency that needs to be corrected. The internal audit is one an only fixes the inefficiency.
   
   
4. Audit Schedule - According to business rules and accounting principles, there is no defined time for a business audit. If you found any problem and error in business it means that the business needs an audit. Well, Based on the business size and daily, weekly and monthly transactions internal audits take place in the business annually, half-yearly and quarterly. 
   
   

Responsibilities and duties of the Internal Auditors.

1. Identify the weak points and errors.
2. Monitor and evaluate each department effectively.
3. Should have to know the company policy before the audit.
4. Analyze and monitor the control and risk.
5. Recommendation for more efficient and effective work and control.
6. Monitor and evaluate each compliance.