Types Of Audits In Business

Financial management is one of the most critical aspects of running successful businesses. It is not just limited to the business companies, but every organization pay greater attention to ensure effective bookkeeping. However, it is incomplete without conducting comprehensive audits.

Keeping this into consideration, many organization conduct their audit in routine such as once a year to ensure improved accounts management.

If you haven’t conducted any audit yet, it is the right time to acquire the services of top audit firms in Dubai for the examination of your financial documents, including the accounts ledger and financial statement. It will help you to maintain a system of accomplishing major financial requirements related to legal and taxation compliance.

To sum up, financial audits enable the companies to ensure smooth business operations while keeping an eye on the accounting records for effective management. Don’t forget to initiate regular audits checks in every department for achieving your business milestones successfully!

Top Audit Firms in Dubai

Business facts about auditing

  • A system of double-entry bookkeeping was established in the 13th century to ensure internal control for the first time in history.
  • Historical analysis indicates that internal auditors were hired even in the 15th century by the kings and merchants to detect frauds in their financial operations.
  • The Institute of Internal Auditors (IIA) was established in the USA by a group of internal auditors in the USA for streamlining internal auditing process.
  • The profession of internal auditing evolved significantly as a discipline of management science after World War II.

What is an audit?

  • The term is referred to creating an audit report of the financial statement.
  • The chief objective of the auditor is to review, examine and evaluate the financial statements of business for accuracy assessment.
  • Organizations can conduct an internal audit by their in-house employees or acquire third-party services of Certified Public Accountant (CPA) firms.

Types of audits in business accounting

  • External audit is referred to the services of third-party certified public accountants for effective consultation regarding legal, financial and taxation matters for an independent opinion.
  • Internal audit is referred to as the objective review by the in-house accountants and auditors for ensuring error-free financial records and internal control over the accounting department.
  • Forensic audit is referred to as the investigation required to figure out the truth regarding financial matters. It is usually conducted for accomplishing a legal obligation.
  • Statutory audit is referred to the inspection of financial statements by authorized entities under the local jurisdiction or other institutions such as central banks.
  • Financial audit is referred to as the inspection of accounting records by an independent professional to ensure effective bookkeeping and transparent financial statements.
  • Compliance audit is referred to as the evaluation of internal procedures and policies to ensure that organization is complying with accounting standards and state laws.

Final Thought

The audit is a systematic process of reviewing, investigating the financial statements for independent reporting. Hire experienced external auditors for the inspection, examination and evaluation of your business financial records.

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