Audit for SMEs: A 2021 Guide for a Hassle-free Audit in Dubai
If you are the owner of an SME or an entrepreneur new to the UAE business landscape, you may be struggling with preparing for an audit. Some SME owners may find it taxing if it’s the first audit of their company. Inadequate preparation will leave you frustrated and tensed when auditors in Dubai knock at your office door to start the audit process.
Audit firms in Dubai have found that the clients who are adequately prepared for the audit engagement experience less disruption compared to those who are disorganised. The entire audit process becomes less stressful for business owners with a properly established finance department. Such a well-functioning team of accountants and bookkeepers can help the business owners prepare well for the audit. However, small business owners must ensure that the following things are done for a successful audit in Dubai, UAE:
1. Assist the Auditor during the Audit
When you hire audit firms in Dubai, you should keep in mind that the management and the auditors share the responsibility equally. Sometimes, the auditors will be facing as much pressure as you. The audit professional may be under pressure to complete the process within the deadline.
They are also expected to complete the audit within the previously agreed-upon budget. So, to ensure the weight is carried equally on both shoulders, you must assign your staff to assist the auditors during the process. Ask your employees to provide the auditors with the required documents. In this way, the audit can be completed without any delay.
2. Ensure to Provide Proper PCBs
Before an audit commences, most audit firms in Dubai will provide you with a timeline and ask for some documents that are essential for the smooth conduct of the audit. This list of items is popularly known as PBC (Provided by the Client) in the audit jargon. When auditors in Dubai make such a request, you must ensure that the PBC is delivered to them on time. Your company should also make sure that the PBC is error-free and accurate. Try to avoid a situation where the auditors discover the error-ridden documents out of blue, which may lead to wastage of time and effort.
3. Cooperate with the Auditor
There may arise a situation where the auditor finds some discrepancies or errors while checking the records. It may happen due to incomplete documents provided by your company or the absence of requested records. In such situations, you must listen to the auditor and understand what they require and provide the requested documents. If you are unable to provide any records, tell them to the auditor without any inhibition. The company must be transparent during the audit and must reveal every important aspect to the auditor. This will help the auditors in Dubai to assess the situation and find alternatives to evaluate data and records.
4. Seek Assistance from Auditors
Calling the auditors and asking for their assistance in advance during the year regarding the treatments of different transactions will help the firm to maintain an accurate report and statements of all the transactions made. It may help the firm to ensure whether the transactions made comply with the principles and laws beforehand, which in turn will benefit the firm during the annual audit.
5. Try to Perform Reconciliation Frequently
It is always the best course to perform the reconciliations of the documents monthly or quarterly which may allow the firm to identify, investigate and resolve the reconciling items in a regular manner, otherwise the firm may not have enough time to resolve the issues before the audit during the end of the year.
Other solutions to make the audit smoother include the following:
- Schedule meetings with the internal accounting team and the audit firms to discuss the timelines and expectations.
- Review payroll reconciliation monthly
- Review bank reconciliation
- Maintain contact with the audit firm to discuss various treatments of different transactions and other significant events during the year.
- Getting the list of information from the accountants that will be required of the staff.
- Ensuring whether the information regarding VAT return filing and Economic substance filing is ready if it is applicable
- Once the audit starts to relax, it is to be conducted regularly once a year and it is inevitable, hence the firms must not consider it as any nightmare instead it is the evaluation of the performance of the firm.
Hire the Best Audit Firms in Dubai for a Hassle-Free Audit
The points mentioned in this blog are some general guidelines that you can use before auditors in Dubai visit your firm. Apart from following these tips, you must ensure one more thing to have a hassle-free audit: hire the best audit firms in Dubai such as Jitendra Chartered Accountants (JCA). JCA is one of the leading providers of audit services in Dubai with more than 20 years of experience in the industry.
We provide personalised services to add value to your business. We have experience in auditing the financial statements of companies from a wide range of sectors such as manufacturing, logistics, retail, e-commerce, e-gaming, and other industries. You can seek our assistance to navigate compliance issues related to VAT, Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Our audit services in Dubai will enable your company to build a good reputation among the banks, the government, free zone authorities, shareholders and potential investors.