Our ServicesStatutory Audit Services Dubai UAE

A statutory audit in Dubai is a legally mandated independent review of a business’s financial records. It must verify that a company’s financial statements are accurate and accurately reflect its economic health. If you’re a business owner in Dubai looking to obtain statutory audit services, MBK Auditing can assist you in reaching your objectives. 

The statutory audit is important for all types of businesses – SMEs or large-scale businesses. 

Why Does a Business Need Statutory Audit Services UAE?

As per the new UAE Commercial Company Law, Federal Law no 2 of 2015, Article 27, Chapter 2, every company must appoint an auditor to audit their book of accounts. The auditors must be licensed and registered with the Ministry of Economy. Here are some of the reasons why businesses need statutory audit services UAE – 

• Assurance of Compliance: Statutory audits guarantee adherence to UAE legal requirements and accounting standards. Auditors reassure stakeholders about the company’s financial stability and compliance with regulations by carefully reviewing financial records to confirm the correctness and completeness of financial statements.
• Finding Mistakes and Irregularities: There’s an old proverb that states, “As auditors, we act as watchdogs, not bloodhounds.” This demonstrates our dedication to defending the interests of stakeholders. We carefully review internal controls and financial statements, looking for warning signs and suggesting corrective actions to reduce risks and safeguard company assets.
• Risk Assessment and Management: Mandatory audits entail a thorough risk assessment procedure that finds possible dangers and weak points in the organization’s functioning. Auditors assess risk management plans, governance frameworks, and internal financial controls, providing management with insightful feedback on improving control measures and efficiently reducing risks.
• Investor and Stakeholder Confidence: Creditors, investors, and other stakeholders are all reassured by an open and trustworthy auditing process. Statutory audits in Abu Dhabi improve an organization’s credibility and confidence by objectively evaluating its governance and financial performance. This facilitates capital access and promotes long-term, sustainable growth.

Also, a company getting into the liquidation phase needs a statutory audit to prepare a liquidator’s report. 

Our Approach at MBK Auditing

An audit is carried out at the company’s request from the relevant authority. The stages below will walk you through a brief idea of how a statutory audit of your company is done at MBK Auditing – 

Step 1: Examining the Internal Audit Report in Step One

Examining the internal auditors’ report is the first step towards understanding the business operations and financial situation comprehensively.

Step 2: Every Conflict that Occurs Has To Be Filed

The internal audit report aims to pinpoint inevitable outcomes and offer remedies to enhance the organization’s efficiency and financial gains. The current auditor should consider each of these recommendations, and the company’s management should also be made aware of them.

3. Examine the Prior Statutory Audit Report

The prior statutory report will assist in creating the company’s statutory audit report and offer insight into its historical rankings.

Step 4: Become an expert in the accounting and auditing software used by the company

Accounting and auditing software is widely used by businesses to assist them in managing their data. The auditor is responsible for comprehending the operation of accounting and auditing software due to the abundance of available options.

• Comprehending the Approval Process for Costs and Expenses
• Determine the costs of the firm’s operations and the products and services that must be audited.
• Outlining the company’s marketing, sales, and collaboration policies.
• Each organization has different marketing, sales, and collaboration strategies. The auditor must learn more about the company in order to offer trustworthy solutions.

Every business involves various operations. An auditor’s job is to comprehend these actions and, if necessary, conduct further analysis to obtain additional business information.

Things to Consider for Statutory Audit in Dubai

It’s critical to understand the nature of the client in order to assist the auditor in accepting or apologizing for the audit. To comprehend how an internal control system operates, one must comprehend its constituent parts (the processes of the accounting system). In the event that he is unable to arrange the customer accounts, he can implement internal control system protocols.

Evaluate the risk associated with internal control mechanisms. Systems that automatically identify what is lacking in the final data audit are deemed high risk if it is agreed that there is a high level of risk in the internal control. To increase the conviction, the audit needs to comprehend the tuning systems.

Analytical Inspection

The audit’s nature, timing, and scope are determined by the auditor based on his assessment of the internal control and audit risk systems.

Assessment of the Audit Findings

After the audit, the scope of the audit work is described in an auditor’s report. This is the final report from the auditor. It makes the conclusions about equity in every financial situation and transaction more understandable.

Observation

The Office of Internal Audit Services will carry out a follow-up audit about six months after the audit report is published. This analysis will ascertain whether remedial measures were implemented.

Assessment and Appraisal of Financial Assets

Then, accounting records created by staff members are reviewed by an outside auditor. The accuracy of financial records is the responsibility of internal audit companies in Dubai.

Obtain Credibility

A reputable business will attract investors. Additionally, it helps the government, which now has faith in the business. Consumers think well of the company, which contributes to its expansion.

Acknowledging and Fixing Mistakes

During the auditing process, an internal auditor reviews all of the books of accounts for mistakes and omissions. These mistakes and omissions can be fixed to maintain accurate financial records.

Cut Down on Fraud Risk

A company’s financial records cannot be independently audited without external audits. Employee scams could go unnoticed for a very long period, resulting in money losses and harm to one’s reputation.

Obtain an Independent, Objective Opinion

The company’s external auditors are the finest source of up-to-date financial information. They review all financial data and can provide an unbiased assessment of an organization’s operations. An accredited internal audit in Dubai can offer insightful information about the company’s performance.

How MBK Auditing Can Help You With Statutory Audit in UAE?

The MBK Auditing team is committed to providing exceptional customer service that exceeds legal mandates. Our goal is to increase your organization’s transparency and boost stakeholder confidence. We follow the International Financial Reporting Standards (IFRS) in compliance with internationally recognized risk-based auditing standards. Our audit services are flexible and customized to meet your particular requirements. 

A group of highly skilled professionals maintains our statutory audit quality. With a wealth of experience, they consistently take advantage of the greatest chances for ongoing personal and professional growth. Strict requirements for objectivity and professional independence are integrated into our methodology. Using an advanced process, we identify the most important risk areas by combining our in-depth knowledge of your company and the financial services industry with technological know-how and pragmatic ideas.

Looking for the best statutory audit services UAE? Contact us now!