Role of Auditors in UAE

Role of Auditors in Dubai,UAE

What is an Auditor?

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within different industries.

How Auditors are Used

Auditors assess financial operations and ensure that organizations are run efficiently. They are tasked with tracking cash flow from beginning to end and verifying that an organization’s funds are properly accounted for.

In the case of public companies, the main duty of an auditor is to determine whether financial statements follow generally accepted accounting principles (GAAP). To meet this requirement, auditors inspect accounting data, financial records and operational aspects of a business and take detailed notes on each step of the process, known as an audit trail.

Once complete, the auditor’s findings are presented in a report that appears as a preface in financial statements. Separate, private reports may also be issued to company management and regulatory authorities as well.

The Securities and Exchange Commission (SEC) demands that the books of all public companies are regularly examined by external, independent auditors, in compliance with official auditing procedures. Official procedures are established by the International Auditing and Assurance Standards Board (IAASB), a committee of the International Federation of Accountants (IFAC). 

KEY TAKEAWAYS

  • The main duty of an auditor is to determine whether financial statements follow GAAP.
  • The SEC requires all public companies to conduct regular reviews by external auditors, in compliance with official auditing procedures.
  • There are several different types of auditors, including those hired to work in-house for companies and those who work for an outside audit firm.

Unqualified Opinion Vs. Qualified Opinion

Auditor reports are usually accompanied by an unqualified opinion. These statements confirm that the company’s financial statements conform to GAAP, without providing judgment or an interpretation.

When an auditor is unable to give an unqualified opinion, he or she will issue a qualified opinion, a statement suggesting that the information provided is limited in scope and/or the company being audited has not maintained GAAP accounting principles. 

Auditors assure potential investors that a company’s finances are in order and accurate, as well as provide a clear picture of a company’s worth to help investors make informed decisions.

Types of Auditors

  • Internal auditors (IA) are hired by organizations to provide in-house, independent and objective evaluations of financial and operational business activities, including corporate governance. They report their findings, including tips on how to better run the business, back to senior management.
  • External auditorsusually work in conjunction with government agencies. They are tasked with providing an objective, public opinion concerning the organization’s financial statements and whether they fairly and accurately represent the organization’s financial position.
  • Government auditors maintain and examine records of government agencies and of private businesses or individuals performing activities subject to government regulations or taxation. Auditors employed through the government ensure revenues are received and spent according to laws and regulations. They detect embezzlement and fraud, analyze agency accounting controls, and evaluate risk management.
  • Forensic auditors specialize in crime and are used by law enforcement organizations.

Special Considerations

Auditors are not responsible for transactions that occur after the date of their reports. Moreover, they are not necessarily required to detect all instances of fraud or financial misrepresentation — that responsibility primarily lies with an organization’s management team.

Audits are mainly designed to determine whether a company’s financial statements are “reasonably stated.” In other words, this means that audits do not always cover enough ground to identify cases of fraud. In short, a clean audit offers no guarantee that an organization’s accounting is completely above board.

ALYA Al Marzooqi Auditing Chartered Accountants(Alya Auditors) as one of the best audit firms in the UAE. They analyze the company structure, working and financial statement; prepare a report and share with the management team. Also, they ask us to make tweaks in the working process so as to reduce risks. Along with this, they organize periodic auditing in the UAE so as to analyze the functioning in more depth.

They have an experienced team of accountants in the UAE who works with you and your management team so as to reduce the chances of error. Moreover, the audit report issued comprises of findings, recommendations, areas of improvement and future action areas.

I would definitely advise the people living in the UAE to consider ALYA UAE for best accounting in the UAE.

Searching For Professional Audit Firms in Dubai ?

Alya Al Marzooqi Auditing Chartered Accountants is the one. Leading CA Firms in Dubai,With its head office at Business Bay & a branch in SAIF Zone.Approved in all the major free zones including DMCC,SAIF,JAFZA,DWC,Maydan etc providing professional services in the field of Auditing , Accounting ,VAT Consultation , Company Formation & CFO services etc. For More Details Contact Us @ Tel : +971 4 876 9377, Mob: +971 52 975 0690, +971 52 475 4007

Alya Auditors assists the registered companies to furnish the annual financial statements . For more information visit us @ www.alyaauditors.com

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