A Statutory Audit in the UAE will be an uninvolved audit of the financial statements of an organization or institution. The auditor’s role is to ascertain whether financial statements are accurate. Additionally, the auditor must warrant that they conform to applicable laws and regulations. This helps protect businesses from risk and assists in planning for future expansion. 

Auditors must report any problems during Auditing to rectify any issues that arise later. Audit companies in Dubai offer prompt and transparent audits that surpass all requirements imposed by law. 

Below is the list of companies or organizations that should be subjected to audits required by law. 

• No matter how big the business is, auditing is essential to ensure the transparency and effectiveness of its business operations. These are: 
• Insurers 
• Banks or investment firms 
• Brokerage services provided by the company 
• Companies that are publicly traded 
• We will now look at the various stages of the statutory audit procedures. Follow the blog to learn more about statutory audits. 

Stages In Statutory Audit In UAE 

Learning more about the client and its internal control system is vital. This helps in accurately conducting an audit. It is also essential to evaluate the risks involved within the Internal control system. Suppose you agree that there’s enough risk in the internal control system. It will automatically cause problems in the final audit report. 

Analytical Scrutiny 

It is a crucial stage in the audit statutory procedure. It also involves evaluating and examining financial and non-financial data to determine the risk. Additionally, it uncovers irregularities and inconsistencies. The aim is to increase the auditor’s understanding of the organization’s business operations. The audit is the one that determines the scale of the audit, its duration, and the type that the auditor will conduct. 

Evaluation Of Audit Results 

It is a crucial stage in the legal audit procedure. It is a process that evaluates the quality of evidence from audits to justify the auditor’s view regarding those financials. The method evaluation process ensures that the auditor’s conclusion is based on solid evidence. Furthermore, these financial reports favor an exact and honest description of the entity’s finances. 

Follow-Up 

The Bureau of Internal Audit Services will conduct a follow-up audit within six months from the audit report’s publication date. The analysis will determine if corrective measures were taken or not. 

Establish Credibility 

The second reason for valuing financial assets is to establish credibility. The auditor must show their knowledge and experience to conduct the valuation. Auditors must be able to prove they are not a part of the company which is being audited. Additionally, they should be able to show that they are not affected by conflicts of interest. 

Recognize And Correct Errors 

The next step when valuing finance assets will be to fix and identify all errors. That means that auditors should locate any flaws in the information. They must also be able to identify any errors in the assumptions utilized to calculate the valuation. The auditor needs to rectify these mistakes so they can guarantee that their valuations are as accurate as possible. 

Reduce Fraud Risks 

The third aspect of the value of the financial asset is to decrease the risk of fraud. The audit should take measures to avoid fraud. Auditors should know the fraud indicators and the perfect way to report them. The auditor needs to be mindful of the entity’s fraud risks. In addition, they should look for fraud by looking for any anomalies in the information. 

Obtain An Objective Opinion 

The fourth stage in valuing finance assets involves getting an objective view. The auditor should be able to make an informed decision on the value of assets unaffected by personal prejudices. Additionally, the auditor must be able to prove their conclusion with facts. 

What is a Statutory Auditor in Dubai 

Audit companies in Dubai provide top-quality auditing solutions to our customers. We favor the latest information and guidance above and beyond the standard. We aim to limit the effect of our work on your daily operations. But we’ll follow a systematic method. This includes recalculating documents, reviewing checklists, sending questionnaires, and studying system and control information. 

Conclusion 

This blog discussed the crucial steps involved in auditors’ being required by law. ebs Chartered Accountants is a top supplier of accounting and auditing services within the UAE. We offer a broad range of services to help businesses complete legal audits. Their experienced team of auditors and consultants will help companies navigate the audit process. We also warrant that the audit process is in line with UAE regulations. We have extensive experience in statutory audits and cover many different services. Planning for audit and risk assessments needs to comply with UAE regulations, communication and reporting, technologies-enabled audit solutions for the auditor. prevention and detection of fraud, industry-specific knowledge and monitoring and continuous auditing. When you work with the best statutory audit service companies, you can gain from our experience. The experts at ebs can benefit you with your audit, bookkeeping, and accounting needs. Our offerings include bookkeeping and accounting services, due diligence auditing, Auditing, and many other services. It is recommended that you contact our professionals and contact us immediately. 

FAQS 

Are audits of a statutory nature obligatory in the UAE? 

Yes, A statutory audit is required within the UAE. All companies operating in the country must have their financial statements reviewed by an independent auditing firm. The law requires that all financial records be accurate and compliant with all applicable laws, rules, and regulations. 

Who can conduct audits in the UAE? 

Only certified auditors can conduct audits within the UAE. To be certified, auditors must satisfy the requirements listed above. 

• Join a reliable accounting body 
• At the very least five years’ experience in the field of Auditing 
• You must pass a competent audit exam 
• Does auditing have to be mandatory for companies paying taxes in the UAE? 

Yes, audits are obligatory for corporations within the UAE. Any business with a tax-deductible annual turnover of AED 300,000 or greater must submit a yearly tax return. In addition, they have to audit their financial statements, which an independent auditor audits. 

What is the purpose of the statutory audit? 

A Statutory audit is an impartial inspection of financial statements for a business to ensure they are accurate, fair, and precise. The statutory audit can assure those involved that the company’s financial statements are trustworthy and can be used to make educated decisions. 

How do I become a certified auditor for the UAE? 

To become a certified auditor within the UAE, you must first be able to meet the following requirements: 

• You must have at least three years ‘ experience in the field of Auditing 
• Achieve a bachelor’s level education in the field of accounting or a related field 
• Take a competent audit test