Best Financial Statement Audit Services in UAE
After establishing as a registered company, it’s essential to file annual financial statements accompanied and attested with an auditor’s report. According to the commercial companies Law, an audit of accounts is necessary for all the businesses in UAE.
What is a financial statement audit?
A financial statement audit is the independent examination of a company’s financial statements and its concerning disclosures by auditors. This provides a true and fair view of the company’s financial performance. When issued to the recipients, the auditor’s report is accompanied by financial statements.
Al Saham supports your company’s financial statement audit by adding credibility to the reported financial position and business performance.
Security and Exchange Commission requires that all publicly registered companies must file annual reports for audit. Similarly, lenders require financial statements to which they lend funds. In other cases, suppliers also require financial statements before they are willing to extend their trade credit.
This enables the auditor to express an opinion on the company’s financial statements prepared by the management. All the financial statements must be prepared per the recognized accounting policies and relevant statutory requirements. Significantly, the report should disclose all material matters.
What is the purpose of financial statement audits?
Planning and risk assessment
Internal controls testing
Substantive procedures
According to the planning and risk assessment, substantive procedures will be performed for each line item booked on financial statements or disclosed in the notes to accounts. ur services at Al Saham would include the following few procedures as well as others as per your business needs:
- Cash – Review of bank statements, petty cash, count of on-hand cash, interviewing the cashier, bank confirmations, and review of bank reconciliation statement.
- Accounts Receivable – End balance check, reconciliation statements, negative and positive confirmations, testing of cut-off procedures and yearend sale.
- Inventory – Physical stock count, examination of supplier invoices, testing of cut-off, receiving and shipping procedures, obtaining confirmation of inventory list at other locations, testing of computation of allocated overhead, etc.
- Accounts Payable – test cut-off procedures and confirm the balance.
- Assets – Observation of assets, authorization of purchase and disposal, recalculation of depreciation and amortization, testing for impairment and verification of market value.
- Revenue – Review of sales invoices, sending negative or positive confirmations to customers, review subsequent transactions including sales returns or abnormal cash discounts or abnormally high prices.
- Expenses – Evaluate and review the bills or any subsequent transactions.
What is the importance of financial statement audits?
- Enhance the quality of the business process – A rigorous audit process identifies the areas where the company’s management can improve its controls on processes. This further adds value to the company by enhancing the quality of its business process.
- Assurance to the investors – A financial statement audit provides a high assurance that the amounts included in the statement and disclosures are free from any material misstatement.
- Accurate and fair view – The statement provides an objective and unbiased view of the company’s finances in all material aspects. It’s generally by the accounting principles.
- Enhance consistency – The audit provides consistency in financial reports while analyzing companies and decision-making.
