A financial statement audit is a systematic review and examination of an organization’s financial statements by an independent auditor. The primary objective of such external auditing services is to provide assurance to stakeholders that the financial statements are free from material misstatement and are presented fairly in accordance with the applicable financial reporting framework, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
External Audit
External Audit Services In UAE
At Chartford, we specialize in delivering comprehensive and reliable external audi services in UAE tailored to meet the diverse needs of our clients. With a commitment to accuracy, integrity, and transparency, our seasoned team of auditors is dedicated to helping organizations achieve compliance, mitigate risks, and optimize performance.
Here are the key components typically covered in a financial statement audit:
Audit Planning:
This phase involves understanding the business and its environment, assessing risks, and planning the audit approach. Auditors determine materiality levels and plan the scope and timing of audit procedures.
Risk Assessment:
Auditors identify and assess the risks of material misstatement in the financial statements due to fraud or error. This involves understanding internal controls and designing procedures to address identified risks.
Audit Procedures:
Auditors perform a combination of tests and procedures to gather evidence supporting the amounts and disclosures in the financial statements. This includes:
Substantive Procedures:
Direct testing of account balances and transactions through methods like sampling, confirmation with third parties, and analytical procedures.
Tests of Controls:
Evaluating the effectiveness of internal controls designed to prevent or detect material misstatements.
Audit Evidence:
Auditors accumulate sufficient and appropriate evidence of the external auditing services conducted by our team to support their opinion on the financial statements. This evidence may include physical inspection, third-party confirmations, documentation, and analytical reviews.
Audit Reporting:
After completing the procedures as per our external auditing services, the auditor issues an audit report expressing their opinion on whether the prepared financial statements are presented unbiasedly, in all substantive aspects that align with the applicable financial reporting framework. The report also provides information on the scope of the audit and highlights any major findings.
Communication with Management and Governance:
Throughout the external auditing services and its processes, our auditors communicate with management and those charged with governance (e.g., the board of directors or audit committee) to discuss audit findings, significant audit adjustments, and other matters.
Subsequent Events:
Auditors also evaluate events occurring after the balance sheet date but before the issuance of the financial statements to determine if they require adjustment or disclosure.
Opinion:
The audit opinion can vary from an unqualified opinion (clean opinion) to a qualified opinion, adverse opinion, or disclaimer of opinion, depending on the findings of the external auditing services or procedures.
Financial statement audits play a crucial role in maintaining confidence in the reliability of financial reporting. They provide assurance to investors, creditors, regulators, and other stakeholders that the financial statements can be relied upon for decision-making purposes. Additionally, external auditing services and financial statement preparations can help your business to improve transparency, accountability, and integrity in financial reporting practices.
Why Choose Our External Audit Services in UAE
Being the top accounting and auditing firms in UAE, Chatford provides you with top-notch external audit services. Our team enfolds qualified auditors with a broad range of experience in vast varieties of industries. Our external audit services in UAE incorporate advanced technological solutions and innovative methodologies. Our audits will provide you with unbiased assessment results of your operational and financial health to promote trust with investors, stakeholders, and regulatory bodies. Whether you are in manufacturing, construction, retail, or service, Chatford is always ready to customize our internal auditing services adhering to your industry standards and regulations.
Frequently Asked Questions
Every company must conduct an annual accounts audit in each financial year. It can be irrespective of the size or nature of the business and the turnover. The number of external audits that an organization should follow depends on various factors like internal policies, regulatory requirements, nature of the business, stakeholder expectations, etc.
Yes. The company believes that an outside party or a team of external auditing services will be more efficient at the work because a governmental entity, such as the IRS, is auditing the business. They provide you with an independent evaluation of the financial statements to ensure their accuracy and compliance according to international standards and regulations.
Conducting an external audit will help you to identify the areas that need improvement, ensure compliance, accelerate credibility, and prevent your business from fraudulent activities by identifying them. The external auditing will also ensure your data security.
Yes. We will be providing you with a comprehensive report upon the completion of our external auditing services in UAE. We will review and assess your financial statements and records during the auditing process. Also, conduct interviews and tests to gather evidence and required information about the data. Finally, we will disclose to you the results of the audit by preparing a detailed report for you.
