Why effective Document Management is Critical for Audits in 2024?

Businesses need to ensure they are effectively managing their records and documents to make the annual audit process smooth and stress-free. This has become more critical especially after the introduction of  corporate tax in the UAE.

You will not be able to retrieve the information easily if the documents are not kept efficiently. Failure to organize the books may lead to the risk of non-compliance. You may also go through a nightmarish situation if some key documents are found missing during the audit.

Audit firms in Dubai advise you to effectively manage your books and records to avoid such situations.

The following blog explains the top ways document management improves external audits:

Ensures security of your documents

The documents maintained by your organisation may contain some sensitive information such as confidential business data, or customer information. Having an efficient document management system ensures your documents are protected by granting access only to authorised personnel. This would protect documents from unsolicited access or leaking while tracking actions in an audit trail.

A robust records management system safeguards important documents electronically as against paper-based documents, which can be lost or damaged in storage units and unmaintained archives. This will make the document retrieval process easier for you while auditors from the best audit firms in Dubai visit your office.

Make better access to documentation

Lack of quick access to documents makes the audit process stressful for both the management as well as auditors in Dubai who carry out the audit process. In the absence of a proper document management system, your designated employee may have to shuffle through file cabinets, desk drawers, email inboxes and other places where documentation might be stored. If you are effectively managing your documents, you can have quick, secure access to documents in a central location. You won’t have to spend more time on audit preparation if your documents are captured, transformed into searchable PDFs and stored in a digital document repository.

Better Backup and Disaster Recovery

You need to consider the chances of potential unforeseen events that might destroy your records and documents. A robust document management system comes with a data backup and disaster recovery plan. If you have digital archiving as a backup, you can ensure your paper documents are protected from fire, flood, and other disasters. Moreover, your documents will be easily traceable and can be tracked back using a wide range of criteria. Efficient document tracking capabilities minimise the chances for documents to be lost or misfiled after viewing.

Update procedures to comply with changes in regulations

Industry regulations can undergo changes at any time. When any law or regulation changes, you need to ensure your business is able to comply quickly and without unnecessary hassle. Regulations such as Value Added Tax (VAT), UAE Corporate Tax, Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) require you to maintain records and documents. Many provisions of these regulations have changed over the years, mandating new documentation requirements.

You may need to update the procedures in line with the changes in the legislation to ensure compliance. With an efficient document management system, records retention schedules can be automated, and new documents can be more easily classified and stored. A robust document management strategy will enable your business to quickly update its procedures to remain compliant with the laws and regulations. It will also create a win-win situation for you and audit firms in Dubai at the time of annual audits.

Makes the workflow trail visible to auditors

Having a good document management strategy is essential to have great visibility into your workflow. It allows audit firms in Dubai to see which users accessed information when updates were made to documents and other details about your organization’s document processes. Such a transparency level allows auditors in Dubai to see the lifecycle of some of your documents from beginning to end. In this way, auditors can ensure you are following the best document management practices and are compliant.

Increases Productivity

Efficient document management increases productivity within your organisation. Quick and efficient document retrieval essentially boosts the morale of your employees and increases client satisfaction. The advantages of having a robust document management strategy include,

  • Flexibility
  • Competitiveness
  • Improved client relations
  • Peace of mind

Access the Services of the Best Audit Firms in Dubai, UAE

Audit firms in Dubai hope the blog post has enlightened you on how an efficient document system improves the external audit process. You can take a leaf from this article and start streamlining your document processes to ensure compliance and be prepared for an audit. Apart from this, hiring the best audit firms in Dubai such as Jitendra Chartered Accounts (JCA) is key to having a peaceful annual audit.

JCA is one of the leading providers of audit services in Dubai with more than 20 years of experience. We have a team of highly qualified auditors and reputable clients. JCA has served a wide range of industries which can improve your audit experience. We can ensure your business success by providing services such as accounting, VAT compliance, and regulatory requirements related to Economic Substance Regulations (ESR), corporate tax planning, transfer pricing advisory, Anti-Money Laundering (AML) and Ultimate Beneficial Ownership (UBO) etc.