The external audit helps the companies enhance their reputation by reassuring them that the financial statements represent a real and fair picture of the business. Hiring the simplest auditing firms in Dubai will make sure that all stages of the auditing process including the audit plan, and test controls are done efficiently and at once. However, the management of the corporate must prepare well beforehand to assist the external auditors to execute the task. The companies got to organize every relevant document and make sure that all the interior processes are in situ before the auditor visits the firm.
The following tips might be useful for the companies to properly steel themselves against the annual audit:
1. Set and Discuss the Priorities
Audit planning is one of the primary and key steps within the process of external auditing and therefore the auditor must study the company’s priorities to style a robust audit plan. The management must prepare an inventory of the important annual activities and submit them to the auditing firm beforehand. Submitting the list of activities beforehand will give the auditing firm the much needed time to review the activities and priorities of the corporate and ask the proper questions. The auditing firm will discuss how the changes within the previous year will affect the audit. Based on these reviews and discussions the external auditor will design the audit plan and provides solutions to deal with the priorities within the plan.
2. Organize and Track Data
The management of the company needs to organize and streamline their data to make the auditing process easier for the auditor. The auditor should not spend much time locating the key financial data and documents which will affect the smooth conduct of the audit process. With the assistance of advanced storage systems, businesses can track all the main documents in real-time. Software like Huddle or SharePoint might be wont to store and track all the financial data of the companies. Such methods will help the businesses easily access the documents required for an audit anytime and can be useful for audits within the upcoming years.
3. Participate in Meeting
The auditor and therefore the client engage during a meeting, which provides the latter an opportunity to speak about the company’s needs, details from the previous year’s audit, and therefore the expectations from the current year’s audit. Before this crucial meeting, the management can help the auditor create an agenda that will give a proper structure for this meeting.
4. Prepare the Staff
The audit process often requires the external auditor to figure together with the workers of the client company. The staff would need to communicate with the auditor throughout the method. The companies got to prepare the staff for the audit well beforehand in order that the day-to-day operations of the corporate wouldn’t be affected while the external auditor visits the company.
5. Plan for Testing of Controls
Testing of internal management is a core step in the audit procedure. The companies can undergo the relevant internal processes that the auditor will examine during the audit process. The companies got to make sure that all the controls required by the standards are in situ.
6. Gather Documentation for your Procedures
Ensuring that each one of the interior procedures is in situ is important but the businesses also will get to provide supporting documents for the audit process. The auditor will invite policy documents, financial statements, and other essential documents. The management must prepare an inventory of all the documents that shows the present internal controls and also got to review them.
7. External Confirmations
During the audit process, the auditor requires various external confirmations like from banks, debtors, creditors, related parties, etc., which may take an extended time and may hold the audit process itself. The management must coordinate with the auditor for such confirmations in order that they're received in time in order that the time of the auditor and therefore the management is saved and the audit process goes smoothly.