Audits are essential for the growth of any company. Without audit, it would be hard for manager and business owners to determine areas of improvement within the company and what are the systems and processes that needed to be changed to improve company’s performance.
However, there are different types of audit that audit firms in Dubai do for companies. It would be best to know what audit types that your company might be in need of. Here are the basic audit types:
- External Audit
External audit pertains to check and balance of financial statements of a company. Usually, a finance team reports to a management or a board of directors regarding the financial status of the company. To know the accuracy and veracity of this financial reports, they need an external firm for verification. External audit assures that there are no misstatements on the reports.
- Internal Audit
Internal audit focuses more how on the organization works and what improvements should be done for the betterment of the company. Internal audit covers the auditing of internal controls, risk management policies being implemented, the flow of information system within the company and checking of systems and processes. Unlike the external audit wherein only the financial team is involved, internal audit requires a number of employees to participate so the audit team can get as many information regarding the company’s operations.
- Forensic Audit
If the internal audit touches some misrepresentations in the reports or fraudulent activities in the company, there is where the forensic audit comes in. Forensic audit covers fraud investigation related misappropriation of funds, in-depth knowledge of financial and insurance disputes and more. Forensic audit usually have some legal implications to remedy the fraudulent acts that the forensic auditors found.
- Public Sector Audit
Public and state-owned companies are required to undergo public sector audit under the supervision of a public sector auditor. The public sector audit is broad like the internal audit it would cover the financial statements, operational activities and procurement process. Public sector audit is connected to the economic stability of the country which is why it is required for these companies to go through the process.
- Tax Audit
Companies are required to go through tax audits to ensure that the figures on a company’s tax papers are correct and accurate to a letter. Some companies employ the help of audit firms in UAE to help them with their tax audit.