Financial audit implies an examination of the books of accounts and other relevant records and internal controls. The objective of this examination is to enable the auditor to give his opinion whether the accounts are properly maintained as per the laws and regulations and complied with necessary accounting reporting framework and statutory requirements.

An external auditor performs an audit, in accordance with specific laws or rules, of the financial statements of a company. Users of these entities’ financial information, such as investors, government agencies, creditors, banks etc, rely on the external audit report for various decision making.

Objectives of external audit
To ensure that the financial statement and accounting records are accurate, complete, and free from material misstatements.
To ensure that financial statements are prepared as per the applicable financial reporting framework.
Whether the financial statements present fairly its results and financial position.
Why External audit?

External audit is required for companies in the UAE for different reasons listed below-

Mandatory requirements by different Freezones like DIFC, DMCC, Jafza, DAFZA, SAIF Zone, Hamriya Freezone etc.
Audit report is required for getting facilities from Banks and Financial Institutions in the UAE
Required for submission to the Group Auditors or to the Head office of the concerned company
For shareholders of the company in general
For Liquidating companies in the UAE
The External Audit Procedures

A well-planned verification is necessary to cover all material financial items. An audit involves the collection and evaluation of all audit evidence collected. The procedures are.

Planning and risk assessment: Involves gaining an understanding of the business and the business environment in which it operates and using this information to assess whether there may be risks that could impact the financial statements.
Internal controls testing: Involves the assessment of the effectiveness of an entity’s internal controls.
Substantive testing: Verification of items through sample testing, external confirmations, subsequent collections etc.
Quick Contact

    Other Services