Preparation for successful External Audit Dubai & UAE
Dubai or UAE the United Arab Emirates is one of the major business hubs. With many of huge companies establishing their business in the country, there are also small businesses which are operating there. With the laws and compliances stringent and mandatory, the need for external audit in Dubai is also high.
An external audit in UAE is one that is carried out by a third-party accountant or an auditing firm with the qualified Chartered Accountants on board. It assures that a company's internal procedures, regulations, and directives are competent, functioning, and compliant with government legislation and industry standards pertaining to the country they are operating in. This sort of audit ensures that the financial statements are free of inaccuracies.
Unlike an internal audit in Dubai or elsewhere in the UAE, an external audit is more likely to be entirely neutral. The corporation or organisation being audited has no affiliation with the external auditors as they have with an internal auditor.
As a result, external audit in Dubai can be carried out without fear of retaliation. External audits can also be performed to confirm the findings of internal audits. Furthermore, it is sometimes simpler for an external body to pick up something that has been dropped.
Its possible that it went overlooked before. As a result, outsider audits may frequently disclose system flaws and how to fix them. External audit in UAE are regarded among the best in the world for their expertise and efficiency, and they can readily provide some of the most crucial insights that may enhance the performance of the organisation being audited.
However, before you choose an audit company in the UAE to conduct an external audit, keep the following nine points in mind:
1. Carry out Fieldwork
To begin, schedule a time to present the relevant paperwork requested by the external auditor or auditors. Then make certain that these documents have been obtained and are ready to be presented. Always double-check these papers before submitting them. This is also an excellent opportunity to make a list of questions you expect the auditor to ask when they are conducting the audit of your entity in UAE/Dubai.
2. Evaluate your Internal Controls Established
Organize meetings with your SMEs and run through the internal processes and controls that will be examined during the external audit in UAE. The purpose and objective of this is to pinpoint any inconsistencies which is existing so as to make sure everything is both consistently and efficiently done.
3. Assign an Audit Manager to Project External Audit in Dubai
It is critical that you designate someone within your company to communicate with the auditor while you are preparing for the audit. This person must possess a set of specific abilities. He should be able to lead meetings for those who will be involved in the auditing process and be a good orator.
He or she should also be capable of project management. SMEs frequently assist this individual in making audit preparations.
Allow employees or staff to be aware that the auditor may contact them, and that any communication with the auditor should be relayed to the audits supervisors. The audit manager should also have a list of people who should be kept up to date on the audits progress, as well as a list of technical support staff who can step in if necessary. It would also be advantageous to hold a training session for those who will be taking part in the external audit in UAE. These employees would be required to submit the necessary paperwork and participate in mock interviews and discussions about the findings that would follow.
Contacting the auditors ahead of time and scheduling a brief meeting to go over the audit’s purpose and objectives can help bring clarity and cohesion to the entire process. If you have an internal auditing team, it’s also critical to keep them informed. Above all, make sure the meeting room and interview schedule are set up and ready to go so that everything runs smoothly.
4. Acquire a Thorough Understanding of the Standard
An external audit in Dubai is a review based on third-party criteria. It is critical that you, as a firm, take the time to define the standard against which you will most likely be judged. Studying how an external auditor will conduct the audit will keep you from doing things that aren’t necessary, such as reviewing issues that aren’t part of the audit’s scope.
5. Make a list of papers you’ll need for external audit in UAE
While your internal procedures may be flawless, the external auditor is likely to want paperwork that will serve as supporting evidence for documents you have previously supplied. Financial statements and policy paperwork are examples of these papers. Examine and fact-check each document to ensure its legitimacy and veracity.
6. Be kind to others
Engage with your auditors in the same way that you would want them to treat you if the tables were turned on you. Make sure to provide them directions to your place of business. Because the auditing process might take up to a day, it’s common to provide working lunches, but bear in mind their dietary limitations. These meals may be a fantastic opportunity to unwind and let your guard down, allowing you to avoid discussing the external audit in UAE and its progress thus far.
This is a fantastic way for both the auditor and the audited to take a break from the arduous auditing procedure. You can even take the auditor on a tour of your place of business. Determine whether the auditor will require internet access, particularly during fieldwork, and if so, give the necessary credentials.
7. Gaining an understanding of the auditing process
All audits start and conclude in the same way. Audits begin with an opening meeting, during which the finer details of the auditing schedule are brought to light and discussed, and end with a closing meeting, during which the results are revealed and the date for the next audit is discussed. The real auditing takes place in the time between the two meetings. However, there's a risk that this technique will differ from one auditor to the next.
While this may appear to be a straightforward task, staying in a conference room for lengthy periods of time and giving the appropriate proof and paperwork for the auditor to evaluate can be laborious.
As previously said, have all of your documentation ready so you don’t have to go searching around the workplace for documents, and make sure the auditing process runs easily and without any delays. Furthermore, you might inquire and confirm that the audit's needed personnel are accessible. When it comes to expediting the auditing process, auditing organizations in Dubai or even established independent auditors in Dubai are really beneficial.
8. Handling the results
The auditor will usually produce a findings and opportunities document at the end of the audit. However, there may be recommendations for large or small non-compliances.
During the departure interview, you will be informed of the findings. Request a copy of the audit report that includes the findings from the auditor. Inviting internal audit and general counsel officials from your organisation to join in the conversation is a good idea. Recognize that there will be a follow-up operation. Finally, do an evaluation and make the necessary improvements based on the auditor’s findings.
When the auditor identifies areas in your firm that need to be changed, its simple to become irritated, but this aggravation won’t get you anywhere. The role of the auditor, according to top external audit in Dubai, is to collaborate with you to enhance your system. Rather of rallying against the problem, it is preferable to come up with solutions that will help your cause.
Have a thorough discussion of the results, as well as a strategy for resolving any issues that may have developed. Discuss findings as they arise, in detail, and how to best resolve them, so that by the end of the audit, you have a clear understanding of the problem and a plan for moving forward – this is important because an audit report can only include a small portion of a “finding” and the context can be quickly forgotten weeks later. Treating “observations” the same way you treat “minor non- conformances” (and addressing each one) shows the auditors that you appreciate their opinion and is a smart method to illustrate future system improvements.
Whether your company is large or little, an external audit will provide you with a better grasp of the regulations that must be followed. Though it may appear frightening, there are several audit organisations in Dubai, Abu Dhabi, Sharjah, and other parts of the UAE that can assist you with external audits.
9. Determine who your Subject Matter Experts are (SMEs)
Explain the significance of the external audit in UAE to your staff and demonstrate the level of performance you want from them so they may be prepared. Employees who understand and implement specific essential duties connected to the auditing process will also be present. These personnel, who are commonly referred to as SMEs, should be given all of the resources they need to complete the external auditors requirements.
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