Our independent auditors provide external audit services for companies in the UAE and express their opinion on financial statements prepared by an organization. The external audit is also known as a statutory audit.
Cressford and Partners has a team of highly qualified and experienced external auditors who have served countless companies in the UAE. These statutory auditors have dealt with various clients from different industries. They know how to customize their audit methodologies depending on the external audit services in UAE requirements and the client environment.
Our firm has earned an excellent reputation due to our unbiased opinion and extreme dedication. We are objective and independent in our approach while providing significant value to our audit and assurance clients.
What is the Statutory Audit/External Audit?
An external or statutory audit is an independent examination of a company’s financial statements. An external auditor conducts it & provides his opinion on whether the financial statements represent an accurate and fair view. Furthermore, the auditor will create a detailed report of whether the company is running profitable operations and what they can do to improve the lacking aspects.
The external audit services are different from internal audits. How are they different? In an external audit, the company’s stakeholders appoint an external auditor, whereas the company management appoints an internal auditor.
Objectives of External Audit Services
- The primary purpose of conducting external audit services in Dubai is to ascertain whether the financial statements provided by the company are ‘factual and accurate. We perform the audit with an unbiased approach. In this way, we present the stakeholders with the exact position of the company.
- The external audit services ensure that the financial statements presented are complete in all material aspects and comply with the financial reporting framework. Auditors critically examine the accounting records and internal controls and apply auditing procedures to satisfy themselves regarding the correctness and accuracy thereof.
Process of External Audit Services in UAE
1) Appointment:
The company’s stakeholders will propose appointing a firm to conduct an external auditor.
2) Acceptance of Engagement:
We confirm the external audit engagement if we are okay with the scope of work. We feel that the company management will not curtail our independence upon accepting the engagement.
3) Audit Requirements:
Our statutory auditors ask the client to provide the necessary information concerning the company to gain a preliminary understanding. The auditors study the following information in detail.
- company profile
- Key employees
- Memorandum of association
- Articles of association
- Past audit reports
- Internal audit reports
- Policies and procedures
The company is also advised to maintain books of accounts, verify them & update them while ensuring that supportive evidence is readily available.
4) Audit Planning:
Our external auditors prepare an audit plan after undertaking risk assessment and deciding the analytical procedures they wish to apply. They also understand the regulatory requirements applicable to the entity and decide the nature, timing, and extent of audit procedures.
External auditors formulate their audit strategy based on the audit characteristics, reporting objectives, work efforts required, experience, and resource availability.
Finally, they prepare the external audit program and define audit objectives for each area under audit and guidelines for the staff to carry out the audit work. They zero in on the areas requiring detailed checks and test checks. Moreover, based on their evaluation of the internal control framework of the organization, they also decide on special procedures to be applied.
5) Audit Execution:
In this stage, the actual audit work starts. Based on the audit execution plan, risks and controls are evaluated. The external auditor is satisfied with whether the internal controls operate as intended. Furthermore, he also looks for evidence supporting the transactions under audit while checking the overall compliance of the accounting records with accounting standards and statutory requirements.
6) Issuance of External Audit Report:
The draft audit report is prepared based on the information gathered and the auditors’ findings. The external audit services report is then checked, finalized, and issued to the client.
7) Audit Follow-up:
Finally, we follow up with the client on the recommendations made in the audit report and verify the corrective measures taken.
Our Methodology of External Audit:
- Gain an understanding of the client audit environment
- Learn about business cycles and processes
- Identification and study of internal controls
- Controls risk assessment
- Detection risk assessment
- Application of analytical audit procedures
- Application of substantive audit procedures
- Documentation and issuance of the draft audit report
- Management representation
- Finalization of the draft audit report
- Issuance of the external audit report
Benefits of Pursuing External Audit Services from Us
It is necessary to conduct an external audit in Dubai to provide the stakeholders with essential information about an entity’s financial position.
1) Fulfillment of Statutory Requirements:
An external audit ensures that financial statements conform to the statutory requirements and that necessary disclosures required by the law are adequately made.
2) Comparable Financial Statements:
Our Statutory auditors also ensure that financial statements are comparable with the prior periods and with similar organizations in terms of format and content. If any events have occurred after the balance sheet date, they are appropriately disclosed, and all unusual transactions are disclosed, making financial statements free from material misstatements. External Auditors also identify any material deviation from generally accepted accounting policies and disclose them suitably in their statutory audit report.
3) Ease in Getting Funding for Business Expansion:
External Audit assures banks and financial institutions and helps secure funds for the company.
4) Unbiased Recommendations:
We provide unbiased recommendations to help businesses improve in several areas and grow.
5) Validation of Internal Control Framework:
Our Statutory auditors evaluate the client’s internal control framework and accounting methods and check if the controls are adequate and operating, accounting policies are consistently followed, and the financial records match the financial statements.
6) Strengthening of the Internal Audit Department:
A statutory audit helps organizations strengthen their internal audit function by evaluating the effectiveness of internal controls and internal audit processes.
7) Higher Operational Efficiencies:
We bring our insights into the functioning of the company, its accounting processes, and corporate governance. It helps to identify internal control weaknesses and achieve higher operational efficiencies.
8) Earn Credibility:
Our statutory Audit will accurately represent the company’s financial position. It helps a company maintain its reputation and brand image.
9) Rectification of Errors:
Our auditors highlight the errors in omissions made in the preparation of financial statements and get them rectified. It helps maintain accurate books of accounts.
10) Get an Uninfluenced Opinion:
External auditors are independent auditors having no financial interest in the company, and we do not engage with the company in any other way than performing the Audit. Hence, we maintain independence and impartiality while issuing our opinion on financial statements.
11) Reduce the Chances of Fraud:
Without an external audit, there will be no checks on the financial records generated by employees. Therefore, an external Audit ensures that chances of fraud are kept in check.
Key Differentiators
We follow all external audit principles to deliver results with razor-sharp accuracy while adhering to deadlines. Additionally, we conduct the tasks in a highly professional and ethical way.
Integrity
Our auditors perform the audit process honestly, conducting each task precisely and diligently. We impartially perform the external audit, taking care of the legal requirements.
Independence
We know that the audit conducted should be impartial and unbiased. Our auditors conduct the audit independently, drawing conclusions based on solid audit evidence.
Fair Presentation
Our company must present the audit report exactly, reflecting our audit activities. The conclusion is always based on our audit findings. We strive to make communication truthful, timely, clear, and accurate.
Skills and Competence
Our team is competent, skilled, and well-trained in the field of external audit services in Dubai. They own prior experience of external auditing and remain updated with the developments taking place in the field of auditing, legal, and accounting fields.
Due Professional Care
Cressford’s auditors exercise professionalism and caution while performing audits. We follow a structured procedure as below:
- Prepare an external audit plan.
- Understand the client’s company & requirements
- Assess the risks
- Perform control management
- Finalize audit findings
- Issue audit report
One of the vital points they keep in mind while performing the tasks is to make reasoned, practical judgments irrespective of the situation.
Report of External Audit
After our auditors provide their stating whether the entity’s financial statements are factual and unprejudiced, we prepare an audit report based on the insights.
FAQs: External Audit Services
You should keep your financial records accurate and up to date. It would help to verify that you have documentary evidence for all the transactions. You should reconcile your accounts to identify and resolve items before external auditors arrive. You should insist that your auditors provide a checklist of items you should be ready with before they come for external auditing.
You should also identify where your auditors can easily access your staff and the required information. Further, you will be better off if you identify key people from each department to coordinate the external audit. Finally, set an audit date that is mutually convenient for you and the auditor.
You should keep your financial records accurate and up to date. It would help to verify that you have documentary evidence for all the transactions. You should reconcile your accounts to identify and resolve items before external auditors arrive. You should insist that your auditors provide a checklist of items you should be ready with before they come for external auditing.
You should also identify where your auditors can easily access your staff and the required information. Further, you will be better off if you identify key people from each department to coordinate the external audit. Finally, set an audit date that is mutually convenient for you and the auditor.
In the case of a VAT audit or tax audit, only tax-related documents are audited. However, in the case of an external audit, all the financial records go under the audit process.
