11 Factors to Consider While Choosing Audit Firms in Dubai & UAE
Not long ago businesses were free to get the bank facilities without being their books of accounts audited. But things changed in the 1990s when many investors went burst and left the country leaving behind the market and banks to bleed. It caused the Ministry of Economy to introduce auditors regulations in 1995 and thereby making it compulsory for the auditing firms with qualified professionals such as CAs, CPAs and ACCAs with required experience in the industry and with fellow members to register their names in the auditor’s register. Since then all the banks in the UAE have started compiling the list of reputed audit firms based on their number of years of experience, qualified team, number of offices, total staff strength, reputed clients, international affiliations, professional indemnity insurance and training standards to their staff.
Businesses should exercise careful examination and background checks while choosing the right audit firm in Dubai, UAE since many audit firms are either not listed with the banks or have a bad reputation with the banks and hence are blacklisted by them. It is a critical decision as any wrong move would deny bank facilities and will create doubts on their financial statements among the lenders and stakeholders especially in the case of public listed companies. The right audit firm would provide assurance to the authorities and stakeholders about the financial health of the company and ensure that the business is complying with regulations.
The companies are advised to hire the best audit firms in Dubai, UAE keeping in mind that the association is going to be a long-time partnership. Choosing the right audit firm is a strategic move that may have an impact on the company’s reputation and credibility especially before the government and potential investors. Most often, the financial decisions taken by the company may be based on the recommendations made by the audit firm and therefore it is crucial to have the right audit partner for business stability.
The following factors should be considered before finalizing the right audit firm in Dubai, UAE:
1) A Reputation of the Client base
High-quality audit firms in the UAE understand that their brand name will be affected by the reputation of their clients. The best audit firms in this regard will be performing a careful and critical examination of their own clients as well. What businesses can do is to find out if the potential audit firm has client acceptance and continuance policies. Their client acceptance guidelines will be rigorous and will include annual reviews.
2) Staff Strength
The businesses should ensure that the audit firm is in a position to assign the best team members that fit the company’s needs. The audit firm should have sufficient staff strength to manage situations when one employee quits or is forced to remove due to conflict with the client. The audit firm should be able to assign staff members who are efficient communicators, critical thinkers and with high ethics. The top audit firms in the UAE will also provide ample opportunities for its staff members to continually develop and improve their core competencies, leadership, professional and technical skills.
3) Strong Reputation
The companies should outsource their audit requirements to a reputed audit firm with a strong presence in the UAE market and no black marks.
Searching online for the best-chartered accountants in the UAE may yield an umpteen number of audit firms that claim to be the best in the business. However, audit companies with a large number of satisfied clients and established a good base in Dubai or the UAE could be trusted with analyzing the financial statements. The audit firms should have systems and procedure in place, hence the company should look for ISO certified audit firms. And a company with client’s testimonials and reviews on their website or on the internet will have an edge compared to the audit firms which has no reviews and clients testimonials.
4) Industry Experience
Dubai is home to a large number of businesses engaged in activities related to various industries. The companies should check whether the audit firm is experienced in dealing with clients from industries that are similar to theirs. The audit process will be smooth if the chartered accountants in Dubai have expertise in dealing with similar industries. The companies can check the audit firms’ websites, blogs or other review platforms to evaluate their experience.
5) Transparency & Communication
The communication between the auditors and the companies should be smooth and based on mutual trust. The companies should ensure that the audit firm in the UAE is transparent in its dealings with the clients. Businesses need to be clear about the procedures and quality controls employed by the audit firms. Make sure that the service is being outsourced to an efficiently communicating audit firm in Dubai.
6) Customer Service
It is crucial for companies to know beforehand whether the audit firms are offering efficient client support. Talk to other clients of the audit company about their experience with the audit procedure. The businesses should ensure that the potential audit firm in the UAE will make their clients’ time a priority and offer full-fledged support. Also, try to get to know the firm and other staff members who will be dealing with the requirements of the clients.
7) Ability to Adapt
The business environment across the world, especially in the UAE, is susceptible to change due to many reasons including changes in regulations or other factors related to the economy. The auditors in Dubai, UAE should be able to adapt to these changes and serve their clients accordingly. An efficient external auditor in Dubai may execute timely strategies in the event of unforeseen events like a pandemic.
8) Approved Auditors
Many free zones in the UAE require the companies to get their books of accounts audited by auditors approved by the regulating authority or auditors who are registered with them. A reputed Free Zone like the DMCC maintains the list of approved auditors and it is mandatory for the companies to hire the approved auditors. The companies operating in some of the free zones should consider whether they are required to comply with such requirements from the free zone authority.
9) Adoption of Technology
The advancement in technology is likely to bring in new challenges and transformations in financial reporting. Many auditing firms have already begun investing in new technologies to improve their work. The businesses can check whether the auditing firm that they are planning to hire is using updated technologies. This is an era of digital transformation and investing in the latest technologies would be beneficial for both the audit firm in Dubai and its clients.
10) Approved Audit firms with the Banks
If the company is planning to take any banking facilities or already having baking facilities then the company should check with the bank before appointing the auditor that the auditor is on their approved list or not.
11) One-stop shop
A business should choose an audit firm that is diversified in many interrelated services such as Tax, business set up and corporate bank finance, HR and have an international affiliation.
Why Choose Jitendra Chartered Accountants?
Jitendra Chartered Accountants (JCA) is a leading audit firm in Dubai, UAE with a record of helping numerous clients with audit requirements. JCA’s highly qualified Chartered Accountants are rated among the best audit professionals in the UAE. JCA’s external auditors will ensure that the financial statements of the companies comply with the local and international regulations and are free from material misstatements. JCA’s highly efficient Chartered Accountants have experience in serving clients of a variety of industries in Dubai, UAE. JCA is at the forefront of smoothly adapting to newer challenges in the business world especially the latest technological advancements. JCA is a one-stop shop for many interrelated services including Tax, and business setup. With a reputed client base and a good name in the industry, JCA has been in the good books of the banks in the UAE. JCA is equipped with good bench strength and the highly qualified staff members pass through robust training standards. JCA offers transparency in its dealings with the clients and a smooth way of business communication makes the association a long-time partnership. With an efficient client support system and a strong presence across the UAE, JCA has become the top choice for businesses for audit services.