Audit Firms in Sharjah Freezone conduct financial audits are a thorough investigation of the records made by a financial organization. It is a method of assessing the authenticity, completeness, and accuracy of the documents. The goal of an audit would be to give an independent guarantee to the public that these financial records are the truth and fairness of the financial position of the business. Audits also assist in identifying any areas in which the internal control system or accounting system might be strengthened.
What are the requirements for a Financial Audit?
When Audit Firms in Sharjah Freezone conducting a financial audit, the independent auditor will examine the company’s books, records, and financial statements. Review with the management all risks and concerns identified during their audit, analyze the internal controls system and conduct tests to verify the accuracy of the information in the financial statements. Audits are conducted in conformity with the Generally Accepted Auditing Standards. These standards were developed by the auditor’s profession and defined the criteria for what is required during an audit.
The auditor should be aware of the company’s internal control system to evaluate whether enough evidence is available to provide an opinion about the financials.
Do I need to conduct an audit?
This is contingent on what kind of company you’re in depending on what the regulations and laws require and what type of funding or investors you have and what your insurance agreements state, the industry standards your business adheres to and what you have to be aware of about the financials of your business.
Small businesses are generally not subject to financial audits. The criteria for small businesses depend on financial requirements (total revenues and assets) or the organizational structure such as a sole proprietorship, a limited liability company, a partnership or a non-profit corporation.
Despite the above criteria as per the Companies Act 476, If 10% of shareholders informally request an audit, the audit must be completed at least one month before the close of the fiscal year in which the shareholders wish for an audit.
Your company may not require an audit. But consulting with an accountant or auditor who can help you determine the audit your company needs is advised.
What companies are required to go through an Audit?
Suppose your company has sold securities to the public or is listed on a stock exchange that is recognized or is subject to the supervision of one of the regulators of the financial industry (such as the Financial Conduct Authority). In that case, it is subject to an audit.
Firms that offer financial services, like investment advisors and accountants, can also be required to undergo an audit. Additionally, some charities and non-profit organizations could be mandated by law or by their governing bodies to carry out an audit.
Insurance firms are also required to conduct an audit as an insurance contract requirement.
Charities that earn more than PS1 million or have assets of more than PS3.26 million or PS250,000 in annual income, as well as businesses in the public sector, like local authorities, are also required to be audited.
What are the advantages of a Financial Audit?
Provides Independent & and Objective Review
Financial audits are an independent and objective examination of your company’s financial records. They can help ensure the information provided is accurate, reliable and up-to-date.
It helps Balancing Your Finances.
An audit can safeguard your company from possible risk, decrease the cost of borrowing money. And boost its image with current and prospective customers, suppliers, and partners.
Protects You Against Fraud
Audits are a great way to identify any fraud or financial fraud that might have occurred within the business. So We can also help identify any areas for efficiency or cost savings. Additionally, an audit can ensure that your company complies with all applicable laws and laws.
Helps Identifying Weaknesses in Your Organization
In the end, an audit may aid in identifying any flaws inside internal systems of control. So that might cause mistakes or even fraud.
Conclusion
Ultimately, the type of audit a small company needs depends on the type of work. But it performs and the regulatory and legal requirements for the particular sector. Audits are an impartial, objective examination of a business’s financials, which helps safeguard. Because the company from risk while finding areas of efficiency and cost reductions.
