Statutory Audit Service
Al Mushthary provides reliable statutory auditing services in various jurisdictions such as UAE, KSA, Qatar, Bahrain, Oman, the UK, and the USA. A statutory audit is an audit conducted as a legal requirement to evaluate the financial records of an organization to determine whether the financial statements are true and fair concerning the financial position of the organization. Statutory audits are performed on all sorts of businesses and government establishments to evaluate financial performance, compliance with laws and regulations, and the openness of financial reporting.
A statutory audit is usually conducted to ensure transparency and correctness in the financial reporting of a company especially when there is a public interest. In this regard, Statutory audit firms are of great importance in the review and evaluation of a company’s accounts as well as the accounting processes. They aim to give an unbiased and objective opinion regarding the financial position of the entity so that users can get a true picture of how the entity has performed financially.
Purpose of Statutory Audit
The fundamental goal of statutory audit services is to evaluate the extent to which a company’s assets have been applied and administered following applicable laws. It also safeguards the integrity of all financial statements by adhering to their compliance with the law.
Even though a statutory audit is not an indication of any misconduct, it helps to ensure that the organization is willing to be transparent and accountable. It reinforces a clear message of diligence and caution; that in case there is any financial misconduct, it will be investigated without any fail. This holistic approach helps to maintain confidence and integrity among its stakeholders and within the organizations.
Who is Authorized to conduct a Statutory Audit?
A statutory audit is a process that is compulsory by law and should be done by licensed auditors who are registered with the appropriate authority. These individuals are required to understand financial accounting and auditing standards and conduct themselves within the limits set by law and ethics by the relevant authorities.
Al Mushthary has a team of qualified and trained auditors who are well-positioned to offer statutory audits within the requirements of UAE, KSA, Qatar, Bahrain, Oman, the UK, and the USA laws and standards. We make sure that all the financial statements of your company are accurate, have enough clarity and they meet the legal obligations of that particular jurisdiction.
Statutory Audit requirements
In preparation for a statutory audit, an organization must have ready access to a certain range of documents and information in place to facilitate a thorough review. This includes:
- Detail on Fixed Assets: Information on fixed assets of the enterprise, their worth, and any related transactions.
- Bank Statements: Thorough account of all transactions of the bank accounts including cash receipts and cash outflows.
- Cash Receipts & Payments: Recorded cash earned and used during the financial year.
- Loans and Advances: Provides both secured and unsecured loans and also gives advances.
- Payable and Receivable: Analysis of debt owed to suppliers (trade payables) and cash expected from customers (trade receivables).
- Purchase and Imports: Items concerning domestic as well as foreign buying.
- Sales and Exports: Sales records in the country and sales made outside the country.
- Stock Information: Consists of a list and valuation of the remaining stock of goods owned by the entity.
- Costs: Evidence of administrative, and marketing expenses with operating costs.
- Exchange of currencies: Details concerning any income or expenses in foreign currency.
- Statutory Dues & Levies: Any evidence of taxes, dues, and other levies payable by the company.
One of the primary reasons behind the conduct of a statutory audit is to ensure the precision and reliability of the financial statements of the company. This helps instill trust in the stakeholders who are interested in these financial records like creditors, debtors, shareholders, banks, and government authorities by helping validate the accuracy of the financial records.
In light of the mounting complexity of the financial regulatory frameworks, statutory audits nowadays call for the reconciliation of different accounting measures and an increasing level of concern by the stakeholders. In this regard, it highlights more than ever the importance of adhering to the rule of law and providing a fair and true view of the financial position.
Expert Statutory Audit Services for Your Business
At Al Mushthary, we offer complete statutory audit services designed to cater to the unique requirements of businesses in all sectors. Our seasoned experts are well-equipped with the current developments of statutory audit standards and regulations thus ensuring your financial statement is properly scrutinized and thereby accurately reflects the financial status of the business.
Regardless of your location in the UAE, KSA, Qatar, Bahrain, Oman, the UK, or even the USA, Al Mushthary aims to provide you with world-class statutory audit services that are professional and by the global standards of accountancy. We cater to all sectors of the economy; assisting government institutions, financial organizations, private companies, investors, and many others in achieving transparency and regulatory compliance.
Partner with Al Mushthary for:
- Experienced Professionals
- Global Standards Compliance
- Reliable and Transparent Reporting
- Tailored Audit Approach
We, at Al Mushthary, understand that regulatory regimes can be quite challenging for most organizations. This is the reason we offer enabling and trustworthy statutory audit services that promote stakeholders’ trust and confidence. Always feel free to reach out to us in case of any inquiries on how we can be of help regarding your statutory audit services.
Call us now or book an appointment for a Free consultation.
