Companies operating in Dubai, UAE, are required by law to be audited, which proves that the company is operating in compliance with commercial law standards, as auditors in Dubai play a vital role. Under the Commercial Companies Law, all mainland firms are mandated to have their financial statements audited. In addition, SMEs must keep financial records for at least five years. However, a company located in a free zone may not be required to have its business audited.
An audit is a procedure auditors perform in Dubai to determine whether a company’s books accurately reflect its current financial position.
Who are the auditors?
Auditing is essential in today’s ever-expanding and dynamic environment. Every company operating in Dubai must undergo an audit to comply with the law and avoid huge fines and penalties. Auditors help companies uncover operational, financial, or management complications and errors.
The Role of Auditors in Dubai
Internal auditors’ main task is ensuring that your company’s assets are protected from risks. These assets may be monetary, technical, or otherwise. Additionally, auditors in Dubai ensure that employees strictly adhere to your rules and processes without compromising core business goals and motivations.
Best Practices
Dubai auditors will help you identify the strengths and weaknesses of your company’s policies and operations. They will help ensure that every business activity you undertake achieves your long-term business goals.
Expert target insight
Auditor feedback should be objective. This is the basic principle and purpose of all audits. The internal auditors you choose should be separate from your organization so they can ultimately perform a transparent audit. An impartial internal auditor will provide unbiased insight into issues and recommend the best solutions.
Management and control evaluation
Auditors have the proper industry knowledge and the best experience in the field; therefore, they can help you in every possible way. You can strengthen your company’s control and management systems with recommendations from internal auditors. Therefore, performing an audit in Dubai is essential to achieve your main objectives and avoid serious risks associated with your business.
Check compliance with applicable regulations.
Depending on the industry in which you do business in the UAE, you may need to follow certain rules. Dubai auditors can help ensure your organization complies with all laws and regulations. They will also help you understand how they affect your conduct and ensure you remain compliant.
Types of Audit, One Business Need
Auditors work in various industries and may be employed by corporations, government organizations, or public accounting firms to perform different audit reports.
Internal auditor
Internal auditors perform the same tasks as external auditors. Internal auditors are important to a company’s decision-making process because they examine business factors such as corporate governance, organizational goals, operational efficiency, risk management, and compliance. Internal auditors identify and help resolve issues before external audits and propose solutions to them effectively.
External auditor
External auditors act as third-party consultants to objectively audit a company’s financial records, such as payroll, purchasing records, expense reports, inventory, tax payments, accounts payable and receivable, and more. In addition, external auditors look for financial discrepancies due to fraud, error, or misappropriation and recommend the best way to address them.
Government auditor
Government auditors audit government agencies, private companies, and individuals involved in government regulatory activities. In addition, government auditors perform financial and compliance audits.
Forensic auditor
Forensic auditors conduct audits to use their findings in court during a trial or mediation. For example, use forensic audits to investigate financial crimes such as fraud and embezzlement. During the trial, the medical examiner may be called to testify.
Responsibilities of Auditors in Dubai
Regular audits help ensure your business survives in Dubai’s competitive business environment. This can help determine whether your organization can succeed in a challenging business environment. The main responsibilities of an auditor in Dubai include the following:
Check the company’s compliance with all laws and regulations.
Peace of mind and advice for business owners or board members
Assess, monitor, and examine risks and controls in the organization.
Why Companies Hire Auditors in Dubai
As financial transparency is essential to protect shareholder interests, hiring the right audit firms in Dubai is crucial for all organizations. Companies must conduct financial audits to ensure compliance with company laws and accounting standards, which help prevent fraud.
Choosing the best auditor or auditing firm in Dubai is crucial to business success. As far as companies are concerned, they must understand the characteristics that define the ideal auditor. Depending on the organization’s structure, management may play a formal or informal role in selecting auditors. Therefore, different management perspectives and perceptions can influence the auditor selection process.
It involves management skills and an understanding of a company’s operational and financial objectives.
When selecting an auditor in Dubai, the following insights can help companies make the best choice:
- Professional knowledge,
- Objectivity,
- Trust and ethics,
- Technical knowledge,
- Communication ability,
- Ability to communicate clearly,
- Business and industrial knowledge.
How can a VVAS auditor help you?
VVAS is a world-renowned business enterprise consultant who analyzes and understands your business needs. We have a team of skilled and qualified business advisors who can assist you with a range of business set-up services, accounting and bookkeeping advice, audit and taxation, risk advice, and legal frameworks and provide proper guidance from the outset, from business guidance to successful implementation.