Financial Audit Services
We, at Al Mushthary, promise here to give a great financial audit service with integrity and transparency into the financial information of your company. An experienced team will examine all your financial statements for the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, and India. The most careful of all our audit work will yield a guaranteed audit report that attests to accuracy, fairness, and the highest integrity in financial statements.
Financial Audit
The financial audit is defined as an in-depth evaluation by external professionals of a company's financial statements, records, and any relevant materials of a corporate undertaking. This process is undertaken to ascertain whether or not the records of financial transactions and rules and regulations are adhered to.
The purpose of a financial audit would be to enhance the credibility of a company's financial position as well as efficiency towards achieving the business objectives. It is achieved by the examination of the financial statements. The external auditors perform a detailed examination of the client's accounting records, financial statements, and every supporting document to ensure that these documents present a fair and true view of the client's affairs and that relevant laws are being complied with.
A financial audit assists the organization in recognizing internal management issues and gives valuable information. With the help of these valuable insights, the company can deal with current and potential challenges to make relatively tactical and calculative overall decision-making.
Al Mushthary is the most reliable financial audit service provider across various countries such as UAE, KSA, Qatar, Bahrain, Oman, and India. Trust us to keep your financial integrity and protect it for business growth.
Financial Statement
A financial statement refers to an overview of the financial position. It outlines the company’s assets, liabilities, and shareholder’s equity.
A financial report assures compliance with the principles of Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS) so that the report prepared follows the industry norms. Our proficient, trained, and qualified auditors carry out detailed examinations of the financial records for the sole purpose of preparing an accurate and reliable audit report confirming the credibility of the financial statements.
Necessity and Importance of Financial Audit
Conducting a financial audit demands various reasons:-
- Detect fraud and ensure accountability: Financial audits provide an excellent basis for detecting fraud and keeping financial accountability within the organization.
- Simplify financial management: Audits assist in monitoring and managing the financial movement of the organization; and help maintain regularity and optimum control of business finances.
- Facilitate Government Funding and Compliance: A properly audited financial report can build credibility and facilitate the sourcing of funds by the government or meet regulatory requirements.
- Legal Verification of Financial Data: Audit ensures that financial data are verified and reported according to the relevant legal requirements.
- Conformity with Accounting Standards: Accounting audit aligns the financial reporting of the company with the existing accounting standards, thus enhancing reliability and accuracy.
- Minimize the Risks: Regular audits protect the company from the anticipated risk of fraudulent practices and ensure financial security.
Financial audits improve the integrity of financial records and facilitate increased credibility and stabilization of the organization.
The procedure for financial audit
To start and complete the financial audit, an organization needs well-planned and structured efforts to arrive at the reflection of accuracy and compliance. The process is as follows:
1. Plan the Audit: The first step is to establish compliance in an overall audit. This comprises gaining an integrated understanding of the business policies of the client, accounting systems implemented, and control procedures in use- making sure one covers all areas of significance.
2. Understand the business environment:
- Industry regulations applicable to the company.
- Nature and objectives of the entity.
- Strategies and methods used to measure financial performance.
- Internal controls are in place.
3. Establishing Audit Criteria: Criteria for the audit are developed under Generally Accepted Auditing Standards (GAAS). The client and the auditor agree and apply these standards toward the audit, whereby both parties can move on with an effective audit.
4. Testing Internal Controls and Transactions: Evaluate the internal controls; therefore, test for their effectiveness since this would ensure that transactions are complete and accurate and reduce possible risks in data being audited.
5. Confirming the Audit Objectives: Determine and confirm specific objectives regarding the monetary domains being reviewed. Those objectives would guide the auditor in measuring risks, focusing on essential elements.
6. Selecting Audit Methodology: Proper audit methodologies are to be selected based on the determination of the objective which has been measured. The audit methodology is of such a nature and extent that it favors the precision of data analysis.
7. Connecting documents and information: Cross-verify all the connected documents, invoices, or bills while ensuring the process of verifying a complete and accurate financial record.
8. Finalizing the audit plan: Check the audit plan in detail, analyze the details of the audit, and check whether it is linked properly. This is one of the earliest preparations to develop a sound financial report.
9. Issuing the audit report: After collecting enough evidence, the auditor draws up a detailed report narrating his findings and opinion on the financial statements and controls of the entity. This will be a very useful document for making decisions and compliance.
By following these procedures, financial auditing keeps all the financial records credible and provides a truly complete audit report for transparency and accountability.
Types of Financial Statements
Our approach at Al Mushthary is that of evidence collection, which is accurate and consistent with the financial audit principles and practices in the UAE. We provide an extensive suite of financial statement audit services that entail:
- VAT Financial Statement Audits
- Audit Reports for Free Zones
- Corporate Tax Audit Reports
- Excise Tax Financial Statement Audits
- Custom Duties and Inventory Audit Reports
The services of Al Mushthary are of the highest standard and include financial auditing which entails the preparation of thorough financial audit reports such as the balance sheet, income statement, cash statement, and equity statements.
Types of Sources in Financial Statement Audits
Balance Sheet
A balance sheet is one of the financial statements that gives an overview of a company’s financial position. It has three important aspects:
- Assets
- Liabilities
- Equity shareholder
Income Statement
An income statement which is often termed a profit and loss statement is a document that depicts the financial performance of a business over a particular duration and therefore states whether the evaluated period made a profit or incurred a loss. It consists of the following two major:
- Revenue
- Expenditure
Cash Flow Statement
Cash flow statements illustrate the changes in cash and cash equivalents for a certain period. It divides the cash flow into three general activities:
- Operating activities
- Investment activities
- Financing activities
Change in Equity Statement
A statement of changes in equity shows the movement of equity of the owners or shareholders over a specific period. The following are the main drivers of this statement:
- Profit or loss for the period
- Payment of dividends
- Unrealized gains or losses
What is the purpose of a financial audit?
There are several reasons why financial audits are essential for any business.
- Ensuring Accuracy and Clarity: An audit may be defined as an exercise or a process that serves the purpose of validating whether the financial records of a company reflect its true financial position thereby providing clarity and building confidence among stakeholders.
- Regulatory Compliance: Audits assess whether or not organizations adhere to relevant financial compliance objectives to minimize the risk of exposure to legal punishment and also the need to maintain a good relationship with the relevant authorities.
- Building Trust with Shareholders: External audits are known to instill confidence in investors, creditors, and other stakeholders in the integrity of the company’s financial statement.
- Fostering Strategic Decision-Making: With precise financial reports provided, management has all the necessary tools to take strategic actions that enhance the levels of the organization and its processes.
- Fraud Prevention: Financial Audits help uncover discrepancies and mitigate the risk of financial fraud, safeguarding company assets and preventing the wastage of resources.
- Improving Operational Efficiency: Audits identify areas of weakness in financial management and internal controls, which enables businesses to make their operations more efficient and cost-effective.
- Enhancing Competitive Advantage: An authentic fiscal audit would improve the reputation of the firm and its shareholders, attracting better investments and more strategic alliances.
Trusted Auditing Services at Al Mushthary
Al Mushthary, a renowned auditing firm in UAE, KSA, Qatar, Bahrain, Oman, India, the UK, and the USA, has qualified and certified auditors who provide expert financial audit services to varying businesses that range from shopping centers to international corporations. We base our approach on a deep understanding of how the business works to address challenges and also uncover growth opportunities.
A team of qualified auditors is committed to rendering world-class financial audit services for international companies, shopping centers, and organizations doing business in various spheres. We provide you with excellent, professional, and quick financial audit service, get in touch with Al Mushthary today and enjoy with us.
Get in touch with us right away to ensure that your company remains in control with the very best financial audit services. Allow Al Mushthary to assist you in discovering the possibilities for growth and achieving success!
