Annual Audit and its Importance
Let’s Talk About the Elephant in the Room
Ever wondered what makes Financial Audits so unwelcome?
Both, internal and external Audits are often considered to be one of the most feared things in business. They are just like exams – good preparation yields good results. But then most of us feared exams too!
Why is Audit Important for Your Business
Audit analyses the financial statements of a business to form an opinion regarding the financial health of the company. This reduces the chances of fraud and also controls misappropriation of assets by the business.
This is why the governing documents of a company require that an Annual Audit is completed for the company at the end of the year or as specified by the MOA. While for companies bound by a regulation Audit is mandatory, it is still highly recommended for companies who are not obliged to complete it as soon as Audit helps stakeholders make a financial health check of the business.
Purpose of Audit
- To trace the transactions to supporting documents and authorizations.
- To carefully review the records, management reports, and also check the different legal documents required for running a business.
- To help the company increase the robustness of its accounting procedures by identifying weaknesses.
- To detect existing financial problems and to suggest appropriate changes in the current procedures for a healthy financial management system.
- To determine additional measures which support the protection of your company’s financial assets.
Are You Prepared?
When it comes to Audit, companies will agree that nothing works better than preparation. It is good to consider Audit preparation assistance to ensure that the business is compliant, and that necessary steps have been taken to minimize all financial problems and to ensure that all documents required for the audit are in place.
Audit is a valuable tool for companies, and by taking Audit Assistance before the Audit could be conducted, a company can be prepared in a much better way. The end of the year marks the time for many companies to begin preparations for upcoming audits and we are always here to assist you with it.
Kindly pay attention, that UAE Company’s Audited Financial Statement for the financial year which ended on December 31, 2019 must be submitted before March 31, 2020.
List of Required Documents
- Copy of license
- Copy of Shareholding certificate
- Copy of Certificate of formation/Incorporation
- Passport copy, Emirates ID copy of Owners /ManagersCopy of Audit Report for the previous year, if available
- Copy of a Bank Statements from the last Audit date, copy of any Bank loans taken
- Copy of the Bank statements from the date of the Account opening, in case of your first Audit
- If any Bank Account was closed during the Accounting Year – the proof of the same Tenancy contract copy
- Copy of the Memorandum of Association /Agreement of Association
- Copies of any other relevant legal documentations like Power of Attorney
- Any details of accounts of the business / Excel extract / Trial balance, if available
- Details of assets of the company, if available
- Number of employees, years of service, current salary with structure, if applicable
- Copy of receipts of expenses for registration or any payment to authority/suppliers/third parties, if available
Our Internal Auditor leverages over 8 years’ experience in Auditing, Accounts Finalization and Finance, completed over 500 Audits, which helped foreign investors to increase the net worth of their UAE Businesses over 300%.
Would you like to know how we can assist you in preparation of the Audited Financial Statement?