Audit firms in UAE Services
WHAT IS AUDITING?
Auditing and Audit firms in UAE are defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step. Some audits have special administrative purposes, such as auditing documents, risk, or performance, or following up on completed corrective actions.
THE THREE DIFFERENT TYPES OF AUDITS
ISO 19011:2018 defines an audit as a “systematic, independent and documented process for obtaining audit evidence [records, statements of fact or other information which are relevant and verifiable] and evaluating it objectively to determine the extent to which the audit criteria [a set of policies, procedures or requirements] are fulfilled.” There are three main types of audits:
- 1-Process audit: This type of audit verifies that processes are working within established limits. It evaluates an operation or method against predetermined instructions or standards to measure conformance to these standards and the effectiveness of the instructions. A process audit may:
- Check conformance to defined requirements such as time, accuracy, temperature, pressure, composition, responsiveness, amperage, and component mixture.
- Examine the resources (equipment, materials, people) applied to transform the inputs into outputs, the environment, the methods (procedures, instructions) followed, and the measures collected to determine process performance.
- Check the adequacy and effectiveness of the process controls established by procedures, work instructions, flowcharts, and training and process specifications.
- 2-Product audit: This type of audit is an examination of a particular product or service, such as hardware, processed material, or software, to evaluate whether it conforms to requirements (i.e., specifications, performance standards, and customer requirements).
- 3-System audit: An audit conducted on a management system. It can be described as a documented activity performed to verify, by examination and evaluation of objective evidence, that applicable elements of the system are appropriate and effective and have been developed, documented, and implemented in accordance and in conjunction with specified requirements.
- A quality management system audit evaluates an existing quality management program to determine its conformance to company policies, contract commitments, and regulatory requirements.
- Similarly, an environmental system audit examines an environmental management system, a food safety system audit examines a food safety management system, and safety system audits examine the safety management system
WHAT ARE THE FOUR PHASES OF AN AUDIT firms in UAE CYCLE?
- 1-Audit planning and preparation: Audit firms in UAE prepare consists of planning everything that is done in advance by interested parties, such as the auditor, the lead auditor, the client, and the audit program manager, to ensure that the audit complies with the client’s objective. This stage of an audit begins with the decision to conduct the audit and ends when the audit itself begins.
- 2-Audit execution: The execution phase of an audit is often called the fieldwork. It is the data-gathering portion of the audit and covers the time period from arrival at the audit location up to the exit meeting. It consists of multiple activities including on-site audit management, meeting with the auditee, understanding the process and system controls and verifying that these controls work, communicating among team members, and communicating with the auditee.
- 3-Audit reporting: The purpose of the audit report is to communicate the results of the investigation. The report should provide correct and clear data that will be effective as a management aid in addressing important organizational issues. The audit process may end when the report is issued by the lead auditor or after follow-up actions are completed.
- 4-Audit follow-up and closure: According to ISO 19011, clause 6.6, “The audit is completed when all the planned audit activities have been carried out, or otherwise agreed with the audit client.” Clause 6.7 of ISO 19011 continues by stating that verification of follow-up actions may be part of a subsequent audit.
What is an audit license in Dubai, UAE?
Simply put, an audit license allows your business to offer auditing services to other companies. The license allows holders to practice accounting services and conduct audits for companies. Only licensed and registered auditors can carry out auditing services in the UAE.
In addition to an audit license, you will need to hold specific qualifications in your field – such as a degree in auditing, accounting or bookkeeping. If you don’t possess such qualifications but have the required experience in your specific field, you can sit exams in Dubai to increase your chances of getting an audit business license.
Understanding Dubai’s Market for Audit firms Services
Dubai’s audit market has evolved substantially over the years, demonstrating dynamic growth. The emirate’s commitment to creating a diverse, sustainable, and business-friendly environment has led to an influx of businesses across various sectors. This, in turn, has propelled the demand for expert auditing services. Current trends indicate that firms offering a wide range of services, including internal auditing, external auditing, forensic auditing, and IT auditing, among others, are particularly well-received.
Importance of Auditing
Audit is an important term used in accounting that describes the examination and verification of a company’s financial records. It is to ensure that financial information is represented fairly and accurately.
Keeping in view the purpose and the goals of an Audit firms in UAE activity, we can now deliberate the possible advantages that lend importance to auditing.
Establishing Trust
The distinction between the stewards of a business and the shareholders and other stakeholders means that not everyone has access to the same amount of information. The latter have to rely on the former for a fair and balanced picture of the affairs of the company.
An Audit firms in UAE herald more trust between these two groups because a professional third party, unrelated to either provides their opinion on the representations made by the caretakers of the company. Auditors are bound by their professional bodies to maintain ethical standards that do not compromise their judgement so their opinion remains unbiased and dependable by all.
Complying with Laws
As already mentioned, certain entities have an obligation imposed by regulators to carry out an auditing activity yearly. However, all businesses have to adhere to the law in regards to preparation of accounts in matters such as following certain international (IFRS and GAAP) and local frameworks and regulations.
These regulations maybe subject to changes from time to time and a professional auditor is required to stay ahead of all these and carry out their audit in light of the most recent and applicable amendments. So, even if your accountant misses out on any requirement, an auditor will help by pointing out the shortcoming and keeping you legally compliant.
Unlike, our competitors, we have KYS Service which is stands for “Know Your Supplier”. Originally a requirement for financial institutions, it has spread to become the norm in the B2B world. It also helps in building trust and minimizing risks,
Transparency
An organization that opens itself up to regular appraisals by a third-party is viewed as open and more responsible. People are more inclined to engage in business that is transparent and reliable then one that indulges in secrecy and media censure.
Importance of auditing is not always demonstratable but it does have intangible benefits which promote better business and business relations in the financial ecosystem that profit all the players
We are an experienced Accounting and Audit Firms in Dubai UAE:
As a top of Audit firms in UAE , Auditing is a significant business requirement that assesses the evidence and documentation of the economic transactions of a company. AHG (Morison Global) provide an independent examination of financial statements. Auditing increases the profit and reliability of financial statements, thereby reducing investor risk and costs. At AHG, we ensure complete auditing in compliance with several corporate objectives. As an accounting firm in Dubai UAE and in Egypt, we share an independent opinion with the stakeholders on the reliability and state of affairs in the financial statements. Whether in compliance with companies or other relevant acts, report by exception to the stakeholders. The internal revenue service verifies the accuracy of taxpayers’ returns and other financial transactions.