External audit services

The most important role of external audit services is to reduce the risk exposure of managers and business owners in financial management, mismanagement, and lawsuits from shareholders, investors, or even regulators. External auditors review financial statements by giving an independent third party that ensures transparency and that the company's financial reports are true and represent the company's operation fairly.

With a global presence in countries such as the UAE, KSA, Qatar, Bahrain, Oman, the UK, and the USA external audits enable the company to build confidence and trust with stakeholders by ensuring that relevant laws and industry standards are adhered to. Independent assurance of the financial statements instills confidence in the investors and other interested parties. It protects the business from possible litigation claiming that the business activities are accurate, reliable, and complying with regulations.

The objective of External Audit

The main objective of an external audit is to offer an independent and unbiased evaluation of an organization's financial statements. The auditor has to conclude if the financial statements give a true and fair view of the company’s financial position, results, and cash flows within the limits of professional judgment. This is done by checking that the financial statements are prepared under relevant national or international accounting standards, such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards).

Key objectives of an external audit include:

  1. Accuracy and Reliability
  2. Compliance
  3. Transparency
  4. Risk Mitigation
  5. Investor Confidence
  6. Internal Controls Assessment

Fundamentally, the external audit provides a critical mechanism for encouraging accountability and transparency in the presentation of financial data thereby enhancing the confidence of stakeholders and supporting the growth of the business in the long run.

The Steps Involved in External Audit

Some stepwise procedural steps have to be adhered to when performing an external audit to ascertain the integrity and accuracy of the financial statements of an organization. Here is a brief explanation: 

  1. Appointment of an Auditor: The initial stage in the entire process of conducting an external audit is appointing an external auditor. This is usually done during the company’s annual general meeting (AGM). 
  2. Accepting the project: When an auditor is appointed, he is expected to formally accept the engagement. 
  3. Audit Program: The auditor designs an audit program that provides direction in conducting the audit by outlining areas of concern and assigning specific steps.
  4. Collecting Evidence: The auditor examines financial documents, records of transactions, and other relevant materials. It involves the physical verification of assets, checking balances with outside parties, and the justification of the correctness of claims.
  5. Reporting: The auditor drafts a report in which he expresses his opinion on the financial statements, whether they are true and fair or not. Such a report may also contain suggestions for corrective action to be taken.

Key Advantages of External Audit

External assessments aim to ascertain the legitimacy of the financial records of the organization in ascertaining that its position is fairly represented. A proper examination of financial transactions and investments is undertaken by the auditor to detect the presence of any inaccuracies, omissions, or misrepresentations.

The primary aim of external auditing is to assess a business's true financial status. The auditors carry out their evaluations objectively and deliver a very precise and reliable report.

  • Ensures Compliance with Laws and Regulations
  • Enhances Financial Credibility
  • Ensures Accuracy of Financial Information
  • Prevention of Fraud
  • Improves Decision-Making
  • Risk Mitigation

 

Why Choose Al Mushthary for Your External Audit Needs?

At Al Mushthary, we provide all-around internal and external audit services, which emphasize understanding our clientele and their business processes. By thoroughly diagnosing key business areas and risks, we streamline our external audit process to include value-adding elements. In this way, we also assess the internal controls and resources available within the organization, making the audit process effective and economical.

We provide external audit services to ascertain the accuracy and fair representation of financial statements. We concentrate on priority aspects to mitigate the risk of financial mismanagement and help enhance the internal controls in the organization.

Our auditors provide practical actionable solutions within the framework of the external audit assignments that allow clients to make sound business decisions, enhance operations, and identify inefficiencies. We strive to conduct a high-quality audit of a business in such a way that it contributes to the development of the entity and a clear understanding of its financial position.

If you are searching for a reputable firm delivering high-quality external audit services in UAE, KSA, Qatar, Bahrain, Oman, the UK, and the USA, then look no further, Choose Al Mushthary!

Contact us now or schedule an appointment to get a FREE consultation.



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