Achieving a successful annual audit for your company
As an entrepreneur, you cannot overlook the essential audit report issued by Dubai auditors after the audit procedure. The audit report will be used as a key communication tool with investors, banks, shareholders, and licensing agencies throughout the year. Given the greater significance of an audit report, you could assume that the audit procedure isn’t always simple and uncomplicated.
You employ a licensed audit firm in Dubai to conduct an annual audit, which will analyze your company’s financial accounts and attest that they are correct to a reasonable degree of certainty. Incorrect attestations have ruined several audit firm’s and auditors’ careers around the world, including Arthur Andersen’s. This means that audit firms in Dubai take attestation very seriously, and if they detect a problem, the auditor will be on your tail.
Even if the inevitable cannot be changed during an audit, there are several critical things entrepreneurs and their accounting teams can do both before and throughout the process. These crucial elements could make the audit process run more smoothly, efficiently, and with less stress for everyone involved. Consider the following issues that can have a significant impact on your company’s annual audits.
Assist the auditors in reducing audit stress
During an audit, you’ll be under a lot of strain, especially if it’s your company’s first time working with auditors in Dubai. However, you should be aware that the burden is equally distributed over both parties’ shoulders. During an audit, auditors will be under pressure just like you. It would be a busy audit season for them, and the auditors would have to work with a lot of other organizations who do audits on the same dates as them.
Aside from the time constraints, the auditors will also have to deal with budgetary constraints. Audit businesses in Dubai are also required to complete the audit within the allowed time frame. This means that the auditors, like you, will want to finish the audit process within the time and budget outlined in the engagement letter. If you take the time to assist the auditors during the audit process, it will benefit both you and them. The more you help the auditors, the more smoothly the audit will run for you both.
Provide 'PBCs' to auditors
When an audit begins, the auditors will provide you with a timeframe and a list of items that must be completed on your part. In auditing lingo, these are referred to as PBCs (Provided by the Client). It is your responsibility to provide the auditors with the necessary information as quickly as possible based on this list. You must ensure that you understand exactly what the auditor is looking for when giving the PBCs.
Don’t send them products just to check the boxes; this will cause problems in the future. To gain a better understanding of the situation, communicate with the audit business you hired in Dubai. When you provide auditors with inadequate, obsolete, erroneous, or difficult-to-follow PBCs, they have a tougher time finding an error during audit testing.
If the auditor discovers an error, cooperate with them
During audit testing, the auditor may discover certain errors or inconsistencies. It’s almost always due to an unintended blunder on your side. In that instance, try to figure out what they were testing for first. It’s very likely that the data you provided wasn’t what they needed, or that you just don’t have the data they require.
In such cases, you should try to figure out what the auditors are looking for and see if you can help them by offering clarification. If it doesn’t work, give them further information. Explain directly why getting adequate data is impractical or you don’t have the required data. Don’t be afraid to explain the problem; it happens a lot with small businesses during their first audit or when they hire a new audit firm in Dubai. Alternative testing is possible as long as the data is missing for a valid cause.
Other Quick Fixes for a Smooth Audit
Apart from the aforementioned essential needs, you can use the following checklist to improve things during annual audits in Dubai:
1. To define timeframes and expectations, meet with your internal accounting staff and auditors in Dubai.
2. Obtain a list of the information that will be requested of your employees from the accountants.
3. Before closing the accounts, double-check that all accounts have been reconciled and examined, that changes have been recognized, and that all mandatory information has been prepared.
4. Ascertain that information for VAT return filing and economic substance filing, if relevant, is available.
5. Maintain contact with your Dubai audit firm throughout the year so that you may address any changes, noteworthy events, or other issues that arise.
Hire the best audit firm in Dubai
The topics stated here can be used as a general guideline or checklist to ensure that everything runs smoothly when Dubai auditors visit your company for an audit. Each audit firm in Dubai (DMCC/JLT Approved Auditors list ) has its review procedure, and you must understand what your auditors’ approach comprises. When conducting an audit, for example, Alya Auditors attempts to exceed our high-quality requirements.
We have extensive expertise in performing audits of businesses of all sizes and industries. Alya Auditors, being one of Dubai’s leading audit firms, implements a rigorous procedure that comprises many levels of review, from fieldwork employees and managers to the auditor who offers a last objective assessment to guarantee the report is technically accurate.