Why Engaging The Right Auditors Is Key To Your Business Growth in 2022?
Auditors in Dubai play the most significant role in enhancing the corporate governance of companies. Since the transparency of financial function is critical to safeguard the interests of shareholders, engaging the right audit firms in Dubai is vital for any company. Financial audits are also necessary for a company to ensure they comply with corporate laws and accounting standards thereby preventing fraud.
In this respect, auditors add value to a business and help entrepreneurs to achieve success in the long run. However, unless it is a compliance requirement, many companies skip the audit process. Submission of the audit report is only voluntary for mainland companies but mandatory for free zone companies in Dubai. We recommend that companies should conduct annual audits (even if it’s not mandatory) by engaging the right auditors. Here are the reasons for it:
Compliance With Accounting Standards
During an audit, auditors review a company’s books of accounts and financial statements to check for compliance with the UAE laws and local and international accounting standards including the IFRS. Auditors issue an unbiased opinion on the company’s financial statements, which helps the companies to better their financial position.
Detection and Prevention of Fraud
By engaging the right audit firms in Dubai, companies can minimise the risk of fraud. This is possible as the auditors provide feedback and recommendations on the company’s transactions and detect any kind of unusual activities that may put the company at risk of fraud.
Guidance on Corrective Measures and Quality Control
Auditors review the books of accounts in detail and suggest better control procedures and areas of improvement. Such suggestions will help the companies improve the financial health of the business. Auditors in Dubai can point it out if the company is overly relying on a few customers for revenues or if its capital structure is debt-loaded.
They can recommend strategies and cash flow management advice to improve business performance. Audit firms in Dubai will assist the companies to detect and rectifying the errors in the financial statements. Such quality control measures suggested by the audit firms will add value to the financial statements of a company.
An independent review and a clean audit report will significantly bolster a company’s image and reputation. Auditors issue a clean report or unqualified opinion only if they are satisfied with a company’s financial statements. A clean report indicates that the auditors are confident of the company’s compliance with corporate governance principles and applicable laws.
Investors, lenders, the government, licensing authorities and the public consider such a report to be free of material misstatements. Obtaining a clean audit report will enhance the credibility of a company, eventually increasing chances for business growth.
The Trust of Shareholders and Other Stakeholders
Companies can gain the trust of stakeholders through a true and fair view of financial statements provided by audit firms in Dubai. The stakeholders include suppliers, customers, and creditors. Gaining the confidence and trust of investors and creditors enable the business owners to raise capital without much struggle. On a similar note, suppliers will be able to work on terms that are favourable to the firm. In this way, the auditors help the companies enhance business growth and profitability.
What to Look for in an Ideal Auditor?
Engaging the right auditor or audit firms in Dubai is critical for business growth. However, companies should also understand the qualities that define the ideal auditor. Depending on the structure of the organisation, management may have a formal or informal role to play in the selection of auditors. The auditor selection process is influenced by the management’s unique perspectives and insights.
It includes the management’s expertise and knowledge about the company’s financial goals and operations. The following insights may help the companies to identify the right fit when it comes to selecting auditors in Dubai:
- Technical expertise
- Business and industry knowledge
- Ability to communicate clearly
- Interpersonal skills
- Trust and ethics
Hire the Best Audit Firms in Dubai, UAE
Summing up, audits are essential for companies not only to meet compliance requirements but also to ensure business growth. Auditors in Dubai provide assurance to investors and other stakeholders apart from enabling business owners to make the right business decisions. Identifying and engaging the right audit firms in Dubai is the key to achieving these benefits. As a leading audit firm, Jitendra Chartered Accountants (JCA) can help the companies irrespective of their size and industry.
JCA has over 20 years of experience in providing accounting and auditing services in Dubai, UAE. JCA’s audit services in the UAE cover a wide spectrum of industries including manufacturing, logistics, retail, e-commerce, e-gaming, and other key sectors. Apart from audit and accounting, We also provide compliance services related to VAT, Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT).