Internal & External Audit

Internal & External Audit

Internal & External Audit

The financial statements of any business enterprise, irrespective of its size and nature of business, hold maximum significance. Therefore, these documents need to be scrutinized and assessed elaborately. That's where the need for internal and external audits arises. 

It is essential to undertake financial audits in an objective and unbiased way. The job of auditing is to be ensured with the help of qualified finance professionals who check the monetary transactions and confirm the accuracy of the financial position of a business. 

An audit is either done internally by employees of the organization or by external auditing agencies.

Internal & External Auditing Services in Dubai, UAE

Internal Auditing

Internal auditing is done by companies regularly. These audits are performed by a group of finance and account professionals who are employees of the company and make up the audit department of the organization. Auditors understand the business environment and the company's accounting policies and business strategies.  

Internal auditing helps to increase the overall efficiency of the business. The auditors evaluate the company process in a precise and systematic manner. Moreover, it helps reduce risks in business operations. They also ensure that the organization ensures regulatory compliances and pay their taxes on time. Having an internal audit process enables the company to face external auditors.

Internal Audit – Procedure  

The procedure followed by internal auditors varies according to the organization's requirements. Though there is no standard format, a common practice followed by internal auditors in the UAE include the following:

  • Plan the schedule for the audit.
  • Inform different departments about the plan and the procedure to be followed.
  • Collect information from each department about their respective operations.
  • Conduct the auditing exercise on scheduled dates and draft audit reports.
  • Management reverts with their suggestions and clarifications.
  • The auditor finalizes the final report and gives it to the management of the client organization for taking necessary remedial steps.

Benefits of conducting Internal Auditing

  • A robust internal auditing practice helps the company analyze its performance and financial health.
  • It is an effective way for Risk Management.
  • It helps to figure out operational irregularities and financial weaknesses.

External Auditing 

External auditors perform the external auditing exercise with precision. The auditors get selected by the Board of directors and shareholders. External auditors are answerable to the shareholders and the regulatory authorities. Hence, they conduct the audit in an unbiased manner. Hence, these auditors conclude their report on the current financial position of the company. For all registered companies in the UAE, an external Audit is mandatory. 

External auditing has relevance in the UAE as they ensure that IFRS and GAAP financial accounting are complied with.  

Since the external auditors are not employees of the organization, they are under no pressure to oblige anyone or work under restrictions. As they are certified finance professionals, their report is precise and accurate, considered valid, and carries a lot of weight with the regulatory authorities, shareholders, financial institutions, banks, and investors. 

External auditors look out for financial irregularities and suggest corrective measures to weigh the management.

External Audit – Procedure  

  • The company finalizes a professional Auditing Agency.
  • The assigned auditor conducts a company audit as per the scheduled date.
  • The external Auditors verify the company's financial transactions, check the company assets, and collect evidence of the same.
  • Prepare and complete the final audit report and submit it to the management.

Absher Audit Services 

Absher Consultancy provides a range of Audit Services in Dubai. Their turnkey of services includes internal and external auditing for all business organizations, whether big or small. The consultancy has a core team of experienced professionals who carry out the audit exercise diligently and accurately. Their scope of work includes

  • Operational risk assessment and providing advice on corrective measures and actions
  • Understanding the business performance
  • Assessing compliance regarding policies and processes.
  • Notification to the Senior Management for lack of compliance.
  • Highlighting the financial instability to the management with suggestions for improvement
  • Verifying the control systems.
  • Detect internal frauds and suggest measures to eliminate them.

Absher Consultancy services go beyond the regular financial analysis and audit. The experts assess deficiency in the company's process and ensure that the management takes their audit report seriously. Hence, these professionals ensure the exact remedial measures.

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