A statutory audit is legally mandated to assess the company's financial situation and records. In a statutory addition, an audit is typically performed for the benefit of the public. Statutory audit firms analyze and monitor corporate accounts and accounting processes to produce a balanced and fair picture of a company's financial health.
In the UAE, government organizations must have their accounts audited by regulated statutory auditors. In a general meeting, a company's shareholders can select any registered statutory auditors or audit firms in the UAE.
All mainland businesses must have their related financial records examined under the Commercial Companies Law. These businesses must preserve financial records for at least five years. Companies operating within free zones are not audited.
So, what is the significance of Statutory Audit Services Dubai? A statutory audit is a required audit that a firm must perform to present its financial picture to the legal authorities.
The external auditor validates the accounting records created by the company's workers. The auditor verifies that the financial records are correct and free of material misstatements. The statutory audit gives an independent judgment on the company's real and fair financial situation and profitability.
This strengthens the company's financial position and helps to secure the further investment required for long-term sustainability and growth.
Credibility is essential to the company's growth. When a company is trustworthy, it will undoubtedly attract more people to invest in it. It also aids in gaining the trust of government officials, who now know that the firm is trustworthy in the market. It creates a favorable brand perception in customers' minds, which promotes the company's growth.
While auditing, the external auditor goes through all of the books of accounts and looks for errors and omissions. Such mistakes and omissions can be corrected, and accurate financial records can be kept.
There will be no impartial examination of the company's financial records if it does not undergo external audits. As a result, employees may begin conducting undetected schemes, resulting in financial and reputational harm. In addition, statutory auditing is usually done once a year. Thus, the auditor must see the client numerous times a year, making staff think twice before committing fraud.
The external auditor goes over all of the company's financial details and is the most knowledgeable about the company's financial situation. An external auditor can obtain an unbiased assessment of the company's operation can be obtained from an external auditor. This might assist in steering the company in the right path. A statutory audit gives shareholders the necessary assurance that the company's management is taking proper care of the company's overall operation.
A statutory audit strengthens an organization's internal audit function by evaluating the efficacy of internal controls and internal audit procedures.
The AKAI Buisness Solution is made up of highly trained and knowledgeable auditors who have worked all across the UAE. These auditors have worked with customers from a variety of industries, and they understand how to tailor their audit methodology to the statutory audit services requirements and client environment.
However, because of our fair perspective and strong dedication, our organisation has achieved an excellent reputation. We take an impartial and independent approach to our work, and we add considerable value to our auditing and assurance customers.
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