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International Financial Center Accounting & Tax Consultancy is committed to providing top notch statutory audit services in, UAE.
Statutory Financial Audit is a mandatory examination of a company’s financial records and statements, conducted to ensure accuracy, compliance with accounting standards, and adherence to laws and regulations.
It is typically required for larger companies or publicly listed firms, as defined by local or international law, to provide assurance to shareholders, stakeholders, and the general public regarding the reliability of financial information.
Statutory audit is a legal process that is required to review the accuracy of an organization’s financial statements and records. A statutory audit is compulsory for government institutions to monitor and evaluate their performance. A statutory audit is also often called an external audit in most countries
1. Accuracy and Reliability: To confirm that the financial statements are accurate and free from material misstatements, whether due to fraud or error.
2. Compliance: To ensure the company complies with generally accepted accounting principles (GAAP), international financial reporting standards (IFRS), or other relevant standards.
3. Accountability and Transparency: To provide transparency for stakeholders, including shareholders, creditors, and regulatory bodies, promoting trust in the company’s operations.
4. Risk Mitigation: To identify and mitigate financial risks by assessing internal controls and processes that could expose the company to fraud or financial mismanagement.
1. Planning: Auditors first understand the company’s business, industry, and control environment to assess risk areas.
2. Testing Controls: Auditors test the internal controls to see how effectively the company prevents and detects inaccuracies in financial reporting.
3. Substantive Testing: Auditors conduct in-depth testing on significant accounts, such as revenue, expenses, assets, and liabilities, by analyzing transactions, balances, and supporting documentation.
4. Evaluation and Opinion: Based on the findings, auditors issue an opinion on the fairness and accuracy of the financial statements. Opinions can range from “unqualified” (or “clean”) to “qualified,” “adverse,” or a “disclaimer,” depending on the audit findings.
1. Increased Stakeholder Confidence: Independent validation of financial statements enhances trust.
2. Improved Financial Controls: Audits reveal areas for improvement in financial processes and controls.
3. Fraud Prevention: Regular audits act as a deterrent against fraudulent activities within the organization.
4. Regulatory Compliance: Audits help companies avoid penalties and maintain compliance with financial regulations.
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