External Audit Services
An external auditor performs an in-depth investigation in accounting records and provides financial opinions to the company for its betterment. An external auditor is referred to as the 3rd person, which means the audit procedure is carried out by an auditor who does not belong to the company that is being audited. External auditors provide an audit report of financial statements, IFRS reporting, review financial statements, advisory service, risks, and errors assurance, etc. External auditors report the contained findings and recommend solutions and improvements for the enhancement of the company performation. The external audit report is provided by the external auditor plays a very important role for the reputation of the company, proper documents should be submitted to the person performing the audit procedures, so that there are no financial errors to be found, this will result in a good and accurate audit report. A bad audit report can affect the company’s position in the market in a bad way. An external auditor provides accurate audit report with the use of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
External Audit Procedure
An external audit is conducted by an independent highly qualified auditor. The auditor’s main aim is to make sure whether the accounting records for a business are completed in time. An external auditor evaluates payroll, does the accounting, and keeps records. External audit procedures are as follows:
Appointment of the Auditor
- It all starts with appointing a highly qualified and eligible auditor.
- An external auditor is referred to as a 3rd person, who is not a part of the company that is undergoing the auditing procedure.
Letter of Acceptance
- Letter of acceptance is to confirm that the auditor has accepted their engagement in the project.
- Further on, the scope of work and all the responsibilities defined in the letter.
- It is the phase where the actual amount of auditing is performed.
- The auditor collects, accesses and interprets data in order to closely understand the activities of a company.
- An in-depth inspection is carried out for the validation of a company’s financial records in order to identify risks that can impact on the financial position.
- External auditors gather evidence in order to fulfill the requirements of the auditing program.
- This process includes:
- Confirming compliance with accounting policies.
- Verifying the assets gained by a company, etc.
- After an in-depth investigation and analysis, the auditor submits a financial report and provides his/her suggestions based on the findings, for the betterment of the company.
- The reports provided by the auditor makes a big impact on the prestige of a company.
Documents required for external audit
When a company is totally prepared to get itself audited, they must provide all the materials and records as and when asked for it. If all the documsubents are provided in time with proper information, the auditor will be able to provide you with an accurate results with complete transparency.
Copies of all legal documents:
- It includes license, articles of association, share certificates, tax registration certificate (TRN), etc.
- Providing all loan documents will help save time and give a proper financial statement.
- Will help in providing accurate audit report.
Trial balance of a company:
- It is the starting phase while performing an audit.
- It helps to scrutinize the credit and debit balances of a company.
- It is a very crucial part for an audit process.
- Payroll reports help the auditor understand the recent situation of a company and its expenses, etc.
Bank account details
- Auditors will require all your bank details with full proof evidence.
- It is essential that you provide all details correctly and within time in order to save time and help to make the auditors work easy.
- All bank account details should be in the name of the concerned company.
- General ledger is very important, so that the auditor can tally correctly.
- It shows the profit and loss gained by the company.
Why external audit is performed in Dubai?
An external audit is an in-depth inspection of the accounts of a company, which is done by a qualified external auditor. An audit process aims towards zero errors with financials of a company. Dubai is considered as one of the business hubs worldwide, business activities take place to a great extent in Dubai, these activities and many of the companies rely on external audit services in order to keep away from legal fines, etc. External audit report is very important in order to get your loans sanctioned by any bank in the UAE, as it uses frameworks like Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). There are various reasons to hire external auditors in Dubai, some of them are as follows:
- An in-depth investigated financial report provided by the auditor helps improve the status of the company in the financial markets
- It adds value to your business.
- Helps in better decision making.
- Helps to expand your business.
- External auditors provide accurate and transparent financial reports.
- While auditing, the auditors find out the errors in the financial statements and provide solutions to it.
- External auditors inspect in detail and find every little thing of a company that is against the laws, which adds on legal fines to the company.