Why Does Your Business Require Audit Services?

The objective of auditing is to determine whether the financial statements of your company are performed followed by the accounting standards, their accuracy, and uprightness. Typically, an audit is carried out by a self-governed team of experts which is completely a separate body and makes sure that the audit process is free from all kinds of favoritism or bias. While having a well-functional system of internal controls is critical for reaching a company’s business goals through prevention of fraud, eliminating risk of misappropriation of its assets, liabilities, and minimizing risk on investments, it’s an audit firm in Dubai that comes to play the vital role of evaluating the usefulness of its existing internal controls. To understand the great importance of audit services for your business, here we like to focus on 5 major factors as stated below:

From Legal Viewpoint:

Now Mandatory in Dubai

No matter whether you are a small, medium or big enterprise operating in Dubai, make a note that as per the UAE’s Commercial Companies Law, every business irrespective of their size or volume of sales turnover, must appoint audit service in Dubai who are approved by DMCC to get financial statement audited at the end of every year. For SMEs located in free zone areas including DAFZA, DIFC, DMCC, and JAFZA, etc are further notified that they should submit their audited statements to the authorities with 90 days from the year-end for renewal of their trade licenses registered under the authority. Therefore, avoidance of the regulation will simply seize your right of functioning in Free Zone that benefits your company to avail special concessions on the levies, duties, etc as set by the Government with the cancellation of your business license.

From Business Viewpoint:

Helps Reach Business Goals

Having an expert audit and accounting services in Dubai has been vital for all enterprises since it helps you to pursue and accomplish your business objectives effectively and successfully. All business procedures require different forms of the internal control system to smooth the progress of monitoring and supervision, detect, and prevent irregularities in process or transactions, evaluate continual performance, minimize risk issues, and promote business productivity. With professional background, internal auditors appraise the consistency of the existing design of your business’s internal controls, spot the loopholes, and accordingly propose further improvements to consolidate the system according to the global standards.

Eliminates the Risk of Material Mistreatment

The threat of material misstatement talks about the risk whereas the financial statements are significantly misstated from what are the actualities and don’t represent the true or fair values. Misstating may occur due to sheer mistakes in bookkeeping or deliberately with deceptive intentions. With effective internal control measures, a professional audit firm in Dubai can help you avoid such misstatements in financial reports which can toll severely on your business performance. Therefore, having your accounting systems audited is vital for you to stop debilitated or erroneous misstatements in financial records and accounting reports.

Prevents and Detects Fraud

The benefit of regular analysis of your company’s financial statements based on seamless internal controls helps prevent as well as to detect different types of frauds mainly done by office staff. Apart from designing the control procedures with consideration of the unique needs of your business functions, they reform the control systems to make it steadier than its earlier versions. One important part of fraud prevention is preclusion which can effectively dissuade a deceptive employee or a third party like vendors from planning to defraud the company.

Secures Cost of Capital

The cost of capital refers to the possible risks associated with the investments of a company. Typically, for any investment that has a higher risk, an investor like a financial institute will call for considerably a higher rate of interest on investments. With efficient audit service in Dubai, you can effectively trim down the range of risks including the risk of fraud, misappropriate of assets or material misstatement, etc prepared with strong control devices that help you convince the investor and make your project a profitable one.

Builds Image to Third parties

All through your business process, you come across numbers of third parties that have great value for your business success. Ranging from your business stakeholders to investors or banks, valuation experts to insurance companies look at your business as one that is trustworthy or a ‘better identify’ once you are prepared with audited financial reports from experts. Typically, when you apply for a business loan to a bank or an investor, they will require audited financial statements before considering your creditworthiness.

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