A statutory audit in UAE is an independent review of financial statements for an institution or company. The auditor’s responsibility is to know if financial statements are fair and true. Also, it is in compliance with all applicable laws and regulations. This protects the companies from risks and also helps to plan future growth.
Auditors must report any issues during auditing to fix any issues later. Audit firms in Dubai deliver timely and transparent audits that exceed all statutory requirements.
Below is a list of companies or organizations that should be subject to statutory audits.
It does not matter how large the company auditing is important to verify transparency and efficiency in its operations. These are as follows:
- Insurers
- Investment firms or banks
- Brokerage services offered by the firm
- Publicly traded companies
Now, let’s discuss the stages of statutory audit procedures. Keep reading the blog and learn more about statutory audit.
Stages In Statutory Audit In UAE
It is very important to know more about the client and its internal control system. As it helps to conduct the audit accurately. Also, it is important to assess the risk involved in internal control systems. If it is agreed that there is a lot of risk in the internal control system. Then, it automatically causes the problem in the final data during the audit.
Analytical Scrutiny
It is a very crucial step in the statutory audit process. In addition, it involves the examination and evaluation of financial and non-financial information to identify potential risks. Also, it identifies the inconsistencies and irregularities. It aims to enhance the understanding of the auditor of the entity’s business operations. The audit decides the size, time, and nature of the audit.
Evaluation Of Audit Results
It is a critical step in the statutory audit process. It involves the assessment of the sufficiency of audit evidence to support the auditor’s opinion on the financial statements. The evaluation process ensures that the conclusion of the auditor is based on sound evidence. Also, the financial statements provide an accurate and fair representation of the entity’s financial statements.
Follow-Up
The Office of Internal Audit Services will conduct a follow-up audit after six months of the publication of the audit report. This analysis determines whether corrective actions were taken or not.
Establish Credibility
Next, valuing financial assets is to establish credibility. This means that the auditor must be able to demonstrate that they have the necessary experience and expertise to conduct the valuation. The auditor should also be able to show that they are independent of the entity being audited. Also, they are not influenced by any conflicts of interest.
Recognize And Correct Errors
The next step in valuing financial assets is to correct and recognize all the errors. This means that the auditors must identify any errors in the data. Also, they must identify the errors in their assumptions that were used to perform the valuation. The auditor should correct these errors so that the valuation is correct as possible.
Reduce Fraud Risks
The third step in valuing financial assets is to reduce fraud risks. This means that the audit must take steps to prevent fraud. The auditor should also be aware of the signs of fraud and know how to report it. The auditor should understand the entity fraud risk factors. Moreover, they should test for fraud by looking for anomalies in the data.
Obtain An Objective Opinion
The fourth step in valuing financial assets is to obtain an objective opinion. This means that the auditor must be able to form an opinion on the valuation that is not influenced by any personal biases. The auditor should also be able to support their opinion with evidence.
What Is A Statutory Auditor In Dubai
Audit firms in Dubai are committed to providing exceptional audit services for our clients. We provide proactive insights and advice that go beyond the basics. Our goal is to minimize any impact our work has on your day-to-day operations. However, we will still maintain a thorough approach. This approach includes recalculating, reviewing document checklists, sending questionnaires, and analyzing control and system data.
Conclusion
In this blog, we looked into the important steps of statutory audits. ebs is a leading provider of accounting and auditing services in UAE. We offer a comprehensive suite of solutions to assist businesses in conducting statutory audits. Their team of experienced auditors and consultants can help companies navigate the audit processes. Also, we ensure compliance with UAE regulations. There is our expertise in statutory audits encompasses a wide range of services.
- Audit planning and risk assessment
- Compliance with UAE regulations
- Reporting and communication
- Technology-enabled audit solutions
- Fraud detection and prevention
- Industry-specific expertise
- Continuous auditing and monitoring
By engaging with ebs statutory audit service, businesses can benefit from our expertise. We help you not only in your audit but also in your accounting and bookkeeping tasks. Our services include accounting and bookkeeping services, Due Diligence audit services, Auditing, and many more. You should get in touch with our experts and contact us today.
FAQS
Is statutory audit mandatory in UAE?
Yes, a statutory audit is mandatory in the UAE. All businesses operating in the country must have their financial statements audited by an independent auditor. This is a legal requirement to ensure that the financial statements are fair, compliant, and accurate with all the laws and regulations.
Who can perform audit in UAE?
Only qualified auditors can perform audits in the UAE. Also, to be qualified, an auditor must meet these requirements.
Be a member of a good accounting body
Have at least five years of experience in auditing
Pass a professional audit examination
Is audit mandatory for corporate tax in UAE?
Yes, an audit is mandatory for corporate tax in the UAE. All businesses with a taxable turnover of AED 300,000 or more must file an annual corporate tax return. Moreover, they must audit their financial statements audited by an independent auditor.
What is the statutory audit?
A statutory audit is an independent examination of a company’s financial statements to ensure they are fair, compliant, and accurate. The purpose of a statutory audit is to provide assurance to stakeholders that a company’s financial statements are reliable and can be used to make informed decisions.
How can I become a licensed auditor in the UAE?
To become a licensed auditor in the UAE, you must first meet the following qualifications:
Have at least three years of experience in auditing
Have a bachelor’s degree in accounting or related field
Pass a professional audit examination