Auditing is one of the most important processes of evaluating and analyzing the company’s financial positions. Internal controls of any organization play a vital role in achieving organizational goals and establishments. Usually companies have their own finance department which monitors all day-to-day activities and financial statements to facilitate executives and owners of the company according to their queries and requirements but some companies use external support from the accounting firms in northern Emirates due to lack of expertise and resources.
For regulatory requirements in the United Arab Emirates, every company should maintain its own financial records and also an internal accounts and auditing department to ensure fair book keeping. Chartered accountants are quite skilled and professional individuals who provide accuracy in financial status of the company and minimize the chances of any reputational breach or law breaking. Financial reports are further analyzed by external auditors who are assigned by government or any business management authority of the country to undertake fair and independent audit and ensure transparency of record keeping. Any type of fraud and miscommunication is highly illegal and could result in license cancellation of the company.
A systematic way of auditing and accounting will benefit any company or business in the following manner.
- Real valuation of any organization is very important to maintain and increase the consumer and potential customer’s faith and trust to further invest in the company with full confidence.
- Cash flows and resource allocations are better understandable for the company’s executive for improvements and maximizing the profitability.
- A close monitoring and examining every departmental record enables the company to reduce or eliminate risks and any material or immaterial losses.
- An internal risk and audit department helps the firm in any type of decision making which is related to any business or investment plans and needs quantitative judgments and scenario scanning.
Internal auditing department and its staff maintain and check every internally and externally enforced policy, rules and regulations on timely basis for reducing chances of policy breach or any regulatory fines. Internal auditors also eliminate the chances of any fraud or misuse of material records.
Reports and financial analysis prepared or authorized by internal auditors are considered reliable due to their financial expertise and detailed knowledge about different risk eliminating methodologies. Their valuable suggestions are always helpful in business improvements and future commitments for expansion or resource allocations.
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