How to Process Documents for an External Audit?
During an audit, auditors in Dubai will request access to a wide range of company information. Audit firms in Dubai ask for this information to ensure that their practices comply with relevant regulations. Auditors in the UAE may ask for key information including payroll and other employee data, financial statements etc.
However, many small businesses that require an audit store their documents inefficiently. This makes the annual audit more stressful and time-consuming for both the management as well as the auditors. Your company may also face the risk of non-compliance if the documents are not stored in an organised manner. Instead of stressing about the next audit, you can get ahead of the auditors by efficiently processing your documents.
Read the below article to know how to process documents for an external audit:
Create a Document Management Plan
Organisations need to set the standards for efficient document creation, storage, processing and security. First, the management should inform and train the employees about the document templates and formats to follow. The management should determine where to store the documentation (cloud or local servers), and how to protect it. For example, companies can lock all file cabinets, restrict access to certain key documents, implement two-factor authentication to access the document management systems, etc. This will make it easier for you to locate and retrieve specific documents when auditors in Dubai visit your office.
Automate the Digital Audit Trail Whenever You Can
Manual record-keeping is an inefficient way of document processing that makes audits in Dubai stressful and risky. In the manual mode, you are prone to make mistakes, skip critical information, and waste a lot of your valuable time. This is why audit firms in Dubai recommend automation to make document management more efficient and hassle-free. Automated solutions can create audit logs, automatically convert documents to the required format, store them, send real-time warnings and notifications, create reports etc.
Use a Document Rendering Software
Having too many data formats will create the risk of dark data and inaccurate audit trails. Dark data emerges when critical information and insights remain trapped inside documents, making their retrieval difficult. Dark data is tough to search, reference, analyze, export, report on, or access on mobile devices.
Keeping all the information in the same format is the best solution to avoid the risk of dark data during an audit. You can use rendering software to keep all records in the same format. A rendering software improves document management, allowing you to store all important documents automatically.
Convert Paper Documents to Electronic Records
Audit firms in Dubai recommend a quick transition to paperless documentation as it helps you to create an efficient digital audit trail. Processing all documents online is beneficial for you as the automated software can track them for better internal control. Moreover, it will be easier for you to locate and retrieve records at any time and use the evidence obtained for auditing.
Run Regular Internal Audit Programs for the Professional Judgment
Carrying out regular internal audits will help the management to ensure the external audit checks are planned and executed properly. Regular internal audit programs will allow you to improve your accounting and financial procedures. When the external auditors in Dubai come to your office, you will have properly developed documentation to establish that all your accounting practices comply with the relevant standards.
Internal audits also offer you efficient risk management. Regular internal checks will help you to detect weak spots in your document management and eliminate them to improve internal record-keeping. You can also outsource the internal check requirements to the best internal audit firms in Dubai, UAE.
List of Key Documents Required for External Audits in Dubai, UAE
So far we have discussed how to process your documents to make the annual audits hassle-free. The documents must be organised as per relevant laws and accepted standards to ensure compliance. Now, let us discuss some of the critical documents the auditors in Dubai may request during the annual audit:
- Reports on payroll
- Trial balance
- VAT return filings
- Important business contracts
- Legal documents such as trade license copy and MoA
- List all bank accounts
- Board meeting minutes
- General ledger
- List of evidence of all the transactions
- Copies of loans, leases, and material contracts
- Records of Anti-money laundering program
Simplify Audits with the Help of Jitendra Chartered Accountants
Annual audits can turn into a nightmare if you are unable to present the documents requested by auditors in Dubai. Inefficient document management is the top reason companies fail to locate, retrieve and present documents. Audits can be hassle-free if you hire the top audit firms in Dubai such as Jitendra Chartered Accountants (JCA). JCA is one of the top companies offering the best audit services in Dubai.
We have over 20 years of experience in the UAE, serving all types of companies including SMEs, startups and big corporate groups. Apart from audits, we offer a wide range of services including, accounting & bookkeeping, corporate finance, VAT, corporate tax advice, and ICV certification. JCA also offers advice related to Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT).