External audits are a bit of a hassle when viewed from the eyes of a business owner. If you are one of those business owners, be informed that the hassle is worth it in the long term. It highlights the inefficacies of the practices in your company and provides validation for the results of internal audits and hence work for quality assurance.
What is an external audit?
It is a financial audit that has a statutory nature. An auditor carries out an independent examination of the records and all the financial processes which occur in your company. After a thorough analysis, the auditor forms an audit opinion and presents it in the form of an Audit report.
If your company does not have an external auditor as yet, you need to hire a professional from a reputable company. Especially if you are running your company in a place like Dubai, where the VAT regulations have recently been put in place, you might not have started practicing in compliance. Thus, you need to get in touch with one of the Top audit firms in Dubai without delaying it further.
This article aims to help you identify the reasons your business will benefit from an external audit.
Reasons to conduct external audits despite the trouble
External audits are essential for your business. Their benefits are often ignored, but you must indulge in them for the sake of long term benefits that they hold for you. More on those reasons below:
1. More impartial than internal audits
Internal auditors are usually an independently hired resource. But the nature of work that they do is different from that of external audits. Internal auditors devise a complete framework of your corporate governance. Hence while they work for your company and suggest changes to the system after they identify the issues. Thus meddling in the affairs of your organization is difficult to avoid. External audits, on the contrary, do not any such risk.
2. Chance to assess the Outlook of your organization
Every organization is liable for audits and presenting financial statements. Thus before the government representative inspect your organization’s statements and inspect their accuracy. In this way, the external auditor helps you assess the picture of your company that they are going to perceive. In this way, your business and the practices do not face any threats related to litigation.
3. Validate the internal audit analyses
When an internal audit report is ready and the auditor presents it to the authorities concerned, it is upon them to take action or choose to ignore it. There’s always room for reconsideration. When an external auditor performs his analysis, it is a good time to either validate the outcomes of internal audit or invalidate them.
4. Quicker identification of system loopholes
Accounting process inside a company can be prone to several issues and error which go unnoticed for long periods. Those errors can become a source of worry for you as a business owner after months of negligence. Hence external audits save you from having to deal with the accumulation of problems over longer periods.
Have you hired an external auditor?
After reading the benefits above, you must be feeling convinced to get the professional services of an audit firm. If you are living in the UAE, you can easily find a firm well-suited to your interest. You need to get in touch with one of the Top audit firms in Dubai to save your business from facing financial inaccuracies and consequent litigation.
External audit needs investment but will save the day for you in the end.