Five Ways Auditors in Dubai Add Value to Your Business
Most business owners in the UAE consider the process of external audit as an obligation and find themselves under pressure during the time of the audit. However, the management needs to adopt a change in their perspective towards the process of audit in Dubai and should view it as an opportunity rather than a compulsion. External auditors in Dubai provide the businesses with the third line of defence that would prevent the companies from financial and operational flaws. An audit adds value to the business and provides a competitive edge to the firm by improving the internal controls within the organization. By hiring the best audit firms in Dubai, UAE the businesses get reasonable assurance that their financial statements are free from material misstatement.
Below are the 5 ways auditors in Dubai can add value to your business:
1. Ensures Validity of Accounting Process
It is mandatory for the companies in the UAE to maintain books of accounts for at least 5 years pursuant to the Federal Law No 2 of 2015 on Commercial Companies and the UAE VAT law and relevant free zone laws. However, the accounting process of the companies may be vulnerable to potential errors.
External auditors in Dubai provide management with an objective view of the accounting process by identifying key errors. The business owners get valuable insights into the financial situation of the company while working closely with the external auditors in the UAE and get the opportunity to make improvements.
Related: How External Auditors in Dubai Help Identify Business Loopholes?
2. Help in Better Decision Making
The audit process helps the management in ensuring the financial statements are up-to-date and accurate. The auditors in Dubai scrutinize the company’s financial records to identify flaws. The errors in the accounting records may be deliberate or purely accidental yet such flaws may lead the company to losses. The errors in the records act as a key bottleneck in the process of decision making. The analysis by the external auditors in Dubai helps the management to make smart and informed decisions about the company.
3. Audit Firms in Dubai Help to Manage Compliance Requirements
The UAE has from time to time introduced several regulations and rules which the companies are required to comply with. Many times the compliance may appear to be complex and requires professional assistance. The best audit firms in Dubai, UAE helps in simplifying the process of compliance and ensure that the businesses are adhering to the regulations as per the laws. The best auditors in the UAE provide value-added services such as ensuring compliance with Economic Substance Regulations (ESR), Value Added Tax (VAT), and Anti-money Laundering (AML) laws.
Related: 7 Ways Audit Firms in Dubai Help A Business Prepare for Auditing
4. Report Weakness in Internal Controls through the Management Letter
The auditing standards require the external auditors to write a management letter addressed to the directors of the company. The content of the management letter is purely confidential and it is addressed to the management and not to the authorities. The auditors identify the deficiencies in the internal controls of the organization during the audit process and it is highlighted in the Management Letter. The Management Letter brings those internal weaknesses to the attention of the management with recommendations to improve the internal controls. Rectifying the weaknesses in the internal controls helps the entrepreneurs add value to their business.
5. External Audit Process Helps Bring in Investors
The best auditors in Dubai can enhance the credibility of the companies and it could improve the investments in the company. The external audit helps the companies to maintain their financial statements more transparent. The external audit process helps the management to easily interpret the financial statement and better understand the financial health of the company. A company that submits regular audit reports attracts the confidence of the investors and customers. An audit-ready company is more likely to be free of financial frauds and hence it can attract more investments and customers. Further, the audit process enhances the business rearing of the company which will add more value to the entity.
Why Choose Jitendra Chartered Accountants?
External audits provide an objective and independent analysis of a company’s financial statements and provide the regulatory authorities, investors, directors, and lenders an assurance that the statements are accurate and complete. Chartered accountant firms in Dubai help the entrepreneurs add value to their business by enabling better decision making, helping to ensure complex compliance requirements, attracting more investments, providing assurance about the accounting process, and enhancing the internal controls. The management can ensure the audit process is done as per international regulations and standards by hiring a reputed audit firm like Jitendra Chartered Accountants (JCA).
Related: 11 Factors to Consider While Choosing Audit Firms in Dubai & UAE
JCA is one of the most renowned audit firms in Dubai with years of experience in helping the companies comply with external audit requirements. JCA’s highly qualified Chartered Accountants ensure that the company’s books of accounts are prepared in compliance with local and international regulations thereby boosting the credibility and reputation of the firm before the regulators and the banks. JCA offers full-fledged services like accounting, auditing, VAT-related services, and also help the companies comply with UAE Economic Substance Regulations (ESR). JCA is committed to helping clients achieve their business goals with peace of mind.