Our independent auditors undertake the external audit of companies in UAE and express their opinion on financial statements prepared by an organization. The external audit is also known as a statutory audit.
N R Doshi and Partners has a team of highly qualified and experienced external auditors who have served across the UAE. These statutory auditors have dealt with various clients from different industries, and they know how to customize their audit methodologies depending upon the external audit services requirements and client environment.
Our firm has earned an excellent reputation due to our unbiased opinion and extreme dedication. We are objective and independent in our approach, and we provide significant value to our audit and assurance clients.
What is the Statutory Audit/External Audit?
An external audit or statutory audit is an independent examination of financial statements of a company, conducted by an external auditor to give his opinion on whether the financial statements represent the true and fair view of its state of affairs and profitability or not.
The external audit is different from internal audit in the sense that the stakeholders of the company appoint an external auditor, whereas the company management appoints an internal auditor.
Purpose of External Audit
- The primary purpose of conducting external audit service in UAE is to present whether the financial statements provided by the company are ‘true and fair’ or not. We perform the audit without being biased. Therefore, we present the stakeholders with the exact position of the company.
- The external audit ensures that the financial statements presented are complete in all material aspects and comply with the financial reporting framework. Auditors make a critical examination of the accounting records and internal controls and apply auditing procedures to satisfy themselves as to the correctness and accuracy thereof.
External Audit Process
It’s the stakeholders of the company who propose to appoint us as external auditors.
We confirm the external audit engagement if we are fine with the scope of work, and we feel that our independence will not be compromised if we accept the engagement.
Our statutory auditors ask the client to provide the necessary information concerning the company to gain a preliminary understanding. Information such as company profile, key employees, memorandum of association, articles of association, past audit reports, internal audit reports, policies, and procedures is studied at length. The company is also asked to keep books of accounts up to date and verified and make sure that supportive evidence is readily available.
Our external auditors prepare an audit plan after undertaking risk assessment and deciding about the analytical procedures they want to apply. They also understand the regulatory requirements applicable to the entity and decide about the nature, timing, and extent of audit procedures to perform.
External auditors formulate their audit strategy based on the characteristics of audit, reporting objectives, work efforts required, past experience, and resource availability.
Finally, they prepare the external audit program and define audit objectives for each area under audit and a guideline for the staff to carry out the audit work. They decide about areas requiring detailed checks and test checks. Based on their evaluation of the internal control framework of the organization, they also decide on special procedures to be applied.
In this stage, the actual audit work starts. Based on the audit execution plan, risks and controls are evaluated. The external auditor satisfies himself as to whether the internal controls are operating as intended or not. The external auditor also looks for evidence supporting the transactions under audit and checks overall compliance of the accounting records with accounting standards and statutory requirements.
Based on the information gathered and auditors’ findings, the draft audit report is prepared. The external audit report is then checked in all respects, finalized, and issued to the client.
Finally, we follow up with the client as to the specific recommendations made in the audit report and verify the corrective measures taken.
Our External Audit Methodology:
- Understanding of the client audit environment
- Understanding of business cycles and processes
- Identification and study of internal controls
- Controls risk assessment
- Detection risk assessment
- Application of analytical audit procedures
- Application of substantive audit procedures
- Documentation and issuance of the draft audit report
- Management represenation
- Finalization of the draft audit report
- Issuance of the external audit report
Benefits of External Audit
It is necessary to conduct an external audit in Dubai to provide the stakeholders with essential information about an entity’s financial position.
An external audit ensures that financial statements conform to the statutory requirements, and necessary disclosures required by the law are adequately made.
Our Statutory auditors also ensure that financial statements are comparable with the prior periods and with similar organizations in terms of their format and content. If any events have occurred after the balance sheet date, then they are appropriately disclosed, all unusual transactions are disclosed, and that makes financial statements free from material misstatements. External Auditors also identify any material deviation from generally accepted accounting policies and disclose them suitably in their statutory audit report.
External Audit provides assurance to banks and financial institutions, and it helps to secure funds for the company.
We provide unbiased recommendations that can help a business improve upon several areas and grow.
Our Statutory auditors evaluate the client’s internal control framework and accounting methods and check if the controls are adequate and operating, accounting policies are consistently followed, and the financial records match with the financial statements.
A statutory audit helps organizations strengthen their internal audit function as it evaluates the effectiveness of internal controls and internal audit processes.
We bring our insights into the functioning of the company, its accounting processes, and corporate governance. It helps to identify internal control weaknesses and achieve higher operational efficiencies.
Our statutory audit will present the true picture of the financial position of the company. It helps a company maintain its reputation and brand image.
Our auditors highlight the errors in omissions made in the preparation of financial statements and get them rectified. It helps maintain accurate books of accounts.
External auditors are independent auditors having no financial interest in the company. We do not engage with the company in any other way than performing the audit. Hence, we maintain our independence and impartiality while issuing our opinion on the financial statements.
In the absence of an external audit, there will be no check on the financial records generated by employees. The external audit ensures that chances of fraud are kept in check.
External Audit Services
Expertise, Experience, Independence,
professionalism, and rapid response
We make sure to follow all external audit principles to deliver the work with optimum accuracy. Further, we take care of conducting the tasks in a highly professional and ethical way.
External Audit Services
see beyond the numbers
External Audit Report
We prepare the audit report where our auditors provide their opinion stating whether the entity’s financial statements are true and fair.
Our audit report follows the auditing standards, and due care is taken in the preparation of the same.
Why N R Doshi and Partners?
N R Doshi and Partners is a reputed external auditing firm based in Dubai. The company owns its growth and reputation due to the faithful and unambiguous service provided to clients. We are approved auditors in Dubai, working in the field of auditing for more than thirty- four years.
During the long span of thirty-four years, we have conducted external audits of several companies from various industries. Besides external audit, we also provide other audit services such as internal audit, forensic audit, information technology audit, compliance audit, and agreed-upon procedure audit.
Companies can also reach us out for accounting, VAT, company formation, human resources, and management consultancy related requirements.
Testimonials: External Auditing Services
FAQs: External Audit Services
What will happen if an entity doesn’t perform external audit?
According to the Commercial Companies Law of UAE, the statutory audit report is mandatory for all the companies functioning in the mainland.
How should I prepare for an external audit?
You should keep your financial records accurate and up to date. It would help if you verified that you have documentary evidence for all the transactions. You should reconcile your accounts to identify and resolve items well before the external auditors arrive. You should insist on your auditors to provide a checklist of items you should be ready with before they come for external auditing.
You should also identify a place where your auditors have easy access to your staff and the required information. Further, you will be better off if you identify key people from each department to coordinate the external audit. Finally, set an audit date that is mutually convenient to you and the auditor.
What is the significant difference between VAT audit and external audit?
In the case of a VAT audit or tax audit, only the tax-related documents are audited. However, in case of an external audit, all the financial records go under the audit process.
We Only Deliver the True Opinion
Because Your Opinion About Us Matters.