Audit is the best way to measure the progress of your business. It is an unavoidable activity that shall be performed by all business. However, before hiring an audit firm in Dubai there are multiple factors to be considered. Choosing a wrong firm will jeopardize the future growth of your entity. Hence, availing the services of an audit firm can be a very delicate job. Every little detail is extremely sensitive to the accuracy of all records. Most often, the financial decision taken by the company may be based on the recommendations made by the audit firm and therefore it is crucial to have a right audit partner for business stability. There are several factors to be considered while choosing an audit firm for your entity.
The factors to be considered before choosing an audit firm in Dubai are:
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Reputation of the Firm:
The audit firm which we choose shall have a good reputation in the industry. Hiring a firm with bad reputation may adversely affect your business progress. A proper analysis of the firm’s reputation is essential before hiring them. High-quality audit firms will have client acceptance & continuance policies. They will accept the clients by following strict guidelines & it may include annual reviews. The reviews of previous clients of the audit firm will enable you to assess the efficiency of the audit firm to handle your requirements. Hence choosing a audit firm with very good reputation will enable you to achieve greater satisfaction for your expectations and the quality of your business will also increase.
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Eligibility of the audit firm:
The management shall assess the qualification and experience of the audit firm and ensure that it shall commensurate with the size and nature of your entity. The creditability and reliability of the audit firm can be verified by checking its qualification. You cannot take a risk to hire an unqualified audit firm as they will not be responsible for any discrepancies and errors. So before choosing an audit firm it is appropriate to check their background and qualification. In this way, the eligibility of the audit firm can be understood.
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Experience of the firm:
Finding an audit firm with experience will help you in getting more organized work. If the audit firm you hire is already familiar with all the operations of the business, they would be able to carry out the audit with more perfection. Having a previous knowledge about similar industry will reduce the time taken by the company and will provide the confidence to the management that the auditing firm will be able to handle the data of the company.
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Business specialties:
Accountants generally specialize in a few business areas in order to offer better service to their clients. Hence it is vital to identify the audit firm who can provide special care to your entity.
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Relationship with the auditor:
For smooth conduct of the audit, there must be a good relationship between the auditor and the management. It helps the audit team to hold up under the stress to complete within the deadlines. A good relationship paves way to good communication, so that the management could disclose all the material facts regarding the financials and avoid any kind of creative work in the audit reports. During the audit procedure, transparency in communication holds a substantial place. Lacking transparency, you will not be aware of the actual auditing process. Hence, it is essential to choose an audit firm who comprehends the communication transparency.
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Fees charged:
This is one of most fundamental factors to consider before hiring the company, but it is the most effective factor. Auditing fee vary from one firm to the other. Some auditing firm will charge a set rate for each task they perform.
Along with all the above factors, certain other special & unique factors shall be considered by the entities while choosing an efficient audit firm. An audit firm will the special features listed above will satisfy your necessity to the greatest extent possible.
KGRN Chartered Accountants, is one of the leading audit firms in Dubai, UAE. Our firm is providing auditing services in Dubai, Abu Dhabi & Sharjah. All your needs relating to auditing services will be served by our team of experts.
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How to perform Audit for Inventory: An inventory audit can be described as the process of verification of company’s actual inventory with the inventory data recorded in the company’s financial records to have a clear understanding on the inventory count of the entity.
This is considered mandatory since this helps in identifying the quantity and quality of goods remaining in stock.Observation of inventory is generally accepted auditing procedure, where an independent auditor issues an opinion on whether the financial records of inventory accurately represent the physical inventory being carried.
Auditing inventory is an important aspect of gathering evidence, especially for manufacturing or retail-based businesses.
Auditing inventory must verify not only the amount of inventory but also its quality and condition to see whether the value of inventory is fairly represented in financial records and statements.How to perform Audit for InventoryCommon Techniques used for Inventory Audit:1.Cut off AnalysisThis is the situation to halt operations at the time of receiving and shipping in order to ensure that no goods shall come in and go out from the business without accounting and improper channels.2.Physical Inventory Count:This is the manual counting of inventory available in the business and ensure that it matches with the numbers in the system3.Analytical Procedures:This involves comparison of profit margins, analysis of ratios etc with the previous years.
Analytical procedures include analyzing inventory based on financial metrics such as gross margins, days inventory on hand, inventory turnover ratio, and costs of inventory historically.4.ABC Analysis:An ABC analysis includes grouping different value and volume inventory.
The items can be tracked and stored in their separate value groups as well.5.Freight cost Analysis:In this analysis, the audit keeps a check on the freight cost that incur for transportation of goods and track the time between the date of shipment and date of receipt of goods in the plant.
External Audit in Dubai, UAE - Accountant Dubai is one of the best external auditing firms in UAE, which offers seamless external financial audited services across the Country.
