External Audit

Compliance with the regulations and, finance of an organization is the backbone of every business.

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External Audit Services

The external audit is a detailed yet objective assessment & financial review of a company’s finance statements conducted by an external entity. External auditing is a comprehensive review that is necessary to build trust among stakeholders since it enables transparency and accountability.

The Main Objective of an External Audit

External audit serves multiple purposes, primarily aimed at ensuring accuracy, reliability, and transparency in the financial reporting of a company or organization. However, regulatory authorities mandate external audits to ensure compliance with the law in a given country. This suggests that external auditing is mandatory in most cases.

External Audit Types

External auditing is itself a major type of financial audit. However, an external audit can take place in a free zone or mainland. Two major types of companies require annual external auditing per regulations: Freezone Company & Mainland Company. Here is a detailed overview of both types of audits:

Freezone Company External Audit

Each state of the UAE offers many free zones that provide various advantages to businesses including tax exemptions & simplified regulations. If you have a company in the Freezone, then you can get the external audit done by the authorized auditing company that has certification from the Ministry of Economy (MoE) of UAE. Bader Saleh Auditing is authorized to perform external audits in every free zone of the UAE.

Mainland Company External Audit

A mainland company, as opposed to a free zone company, does not have tax exemptions. It follows the regular rules. The advantage of having a mainland company is that it operates within the wider geographical area of the country. However, some specific auditors can perform the external audit of this sort of company. BSA also offers services to mainland companies for external financial audits.

Documents Needed for External Audit

Essential documents for the external audit to take place efficiently are as follows:

VAT Return Filings
Fixed Asset Records
Economic Substance Report Copy
AoA- Articles of Association
Management Letters and Correspondence
MoA – Memorandum of Association

Legal Documents
Inventory Records
Insurance Policies
Previous Audit Reports
Details of Anti-money Laundering Processes
Any Other Relevant Documents

01

Financial Audits

Financial Audits Through a financial audit, our auditors can provide an independent and impartial evaluation of your financial reporting process, including your financial reports and documents.

Operational Audits

Our auditors can perform an operational audit on your company and identify gaps within your processes that are preventing further operational efficiency. Using this data.

02

Compliance Audits

A compliance audit is a structured approach to determining the level of compliance of a company to internal protocols and external regulatory measures, either by its industry or by the local governing authority.

03

Integrated Audits

The coverage of an integrated audit includes all three aspects of your business process, from compliance to financial reporting. Through a sweeping and complete analysis of your internal protocols, we can identify information gaps between your reporting processes as well as inaccurate recording practices that result in data loss.

04

System Audit

An information system audit, or information technology audit, is an examination of the management controls within an Information technology (IT) infrastructure. Through the evaluation of your information system we can determines if the information systems are safeguarding assets, maintaining data integrity.

05

Due Diligence

Due diligence is a process of verification, investigation, or audit of a potential deal or investment opportunity to confirm all facts, financial information, and to verify anything else that was brought up during an M&A deal or investment process. Due diligence is completed before a deal closes to provide the buyer with an assurance of what they’re getting.

06 Why Choose Bader Saleh Auditing?

Bader Saleh Auditing of Accounts has been providing external audit outsourcing services for almost two decades in the UAE. Moreover, we prioritize transparency and accountability, ensuring that our clients can trust the accuracy of their financial reporting. Our team of auditors has successfully completed thousands of auditing assignments so far.

Furthermore, we believe that an external audit does not only identify the issues & potential risks but also makes the way for the growth of the business. In addition to experience, we are also authorized to conduct audits in every free zone of the UAE. It is one of the reasons why clients choose BSA over others since we conduct effective audits of mainland & free zone companies alike.

Functions Of An External Auditor

External auditors perform a range of functions, including examining financial records, assessing internal controls, and confirming compliance with relevant laws and regulations. An independent external auditor is a professional with no affiliations to the organization being audited. This independence ensures an unbiased evaluation of financial information. The most important function of an ex auditor is to make sure that a company’s financial statements align with Generally Accepted Accounting Principles (GAAP) through a thorough and systematic auditing process.

Requirements for an External Auditor

To ensure the credibility of the audit process, external auditors must meet certain requirements. These may include professional qualifications, adherence to ethical standards, and compliance with regulatory guidelines. Moreover, external auditor certification is a must for the auditor as well.

Benefits of External Audit

External audits offer numerous benefits, including improved financial transparency. Audited financial statements are more trusted by the investors & stakeholders. Moreover, th compliance with the regulations set by the authorities is also a major benefit of ex audit. However, there are several other benefits as well. Some of the most prominent benefits of external financial auditing are as follows:

Identification of Potential Risks
External audits meticulously examine financial records, uncovering potential risks and irregularities.
Confidence Among Stakeholders
External audits instill confidence in stakeholders, including investors, creditors, and employees, as they rely on independently verified financial information.
Upholds Credibility
By subjecting financial statements to external scrutiny, audits bolster the credibility of a company’s financial reporting.
Reliable Financial Information
External audits ensure the reliability of financial information by validating the accuracy of records and adherence to accounting standards.

Conclusion

In this detailed analysis of external audit, we have summarized each and everything related to external financial auditing. The documents you need, and how the auditing procedure should take place. Moreover, we have also made sure you are well informed to make the important decisions of getting your company externally audited in the most efficient way possible.

In conclusion, you should make sure you are hiring a firm that has the experience and is authorized to conduct the audit of both Freezone & mainland companies. However, if you have queries regarding external auditing or you want your company to get audited, you can consult with one of our experts. We are offering the first consultation absolutely free.

Frequently Asked Questions

What's the Purpose of an Audit

An audit’s purpose is to provide an independent assessment of an organization’s financial statements to ensure accuracy, reliability, and transparency.

What an external audit methodology involves

External audits involve a thorough examination of financial records, internal controls, and compliance with laws and regulations.

How Often Should External Audits Be Performed?

The frequency of external audits varies, but they are typically conducted annually to provide stakeholders with regular assurances regarding financial reporting.

Who is authorized to conduct External Audits?

External audits are conducted by external independent auditors, usually from specialized external audit firms such as BSA, to ensure impartiality and objectivity.