Importance of Audit Procedures in the UAE

Audit Firms in Dubai UAE

Audit Firms in Abu Dhabi

The audit is an independent examination of the financial information of a company with the intention to express an opinion on the financial statements that represent a true and fair view. Auditing includes checking financial records, books of accounts, and documents with applicable laws and regulations. During the audit engagement, auditors need to collect audit evidence that is sufficient and appropriate. For that, they need to apply various audit procedures. 

Audit Procedures to be conducted by Audit Firms in Abudhabi, Dubai, and other emirates in the UAE 

  • Audit procedures are the processes, techniques, and methods used by the auditors to obtain the audit evidence, enabling them to conclude the set audit objective and express their independent opinion. 
  • Auditors need to design audit procedures to detect all kinds of risks and ensure that the required audit evidence is obtained sufficiently and appropriately. 
  • Auditors need to create audit plans and procedures before the audit work starts. This helps them to make sure that all areas and risks are addressed in the audit procedures.
  • Audit procedures might be different from audit client to client and the year to year in which audit is carried out.
  • Audit procedures include ‘AEIOU’; i.e. Analytical Procedures, Enquiry and Confirmations, Inspection of material items, Observation, and Recalculation & Reperformance.
  • These audit procedures will depend on several factors. Obtaining and evaluating audit evidence is one of the most critical parts of an audit. Also, it is crucial to ensure that the quality and quantity of the audit evidence obtained. Auditors also need to look at how the obtained evidence related to each other.
  • Most of the information that auditors receive will be financial. However, it is also crucial for auditors to look at non-financial data.    
  • Audit procedures are performed to test the following in the financial statement:
  • All the transactions have been recorded in the financial statements, which include assets, liabilities, equity, income & expenses.
  • All the transactions that have been recorded are related to the company.
  • All the transactions have been recorded at their appropriate amounts/values.
  • All the transactions are appropriately presented and disclosed which are clearly understandable to the users.
  • All the transactions have been recorded at the correct amounts; support documents are available for each transaction.
  • The company has a right to use or dispose of its assets and is obligated to pay off the liabilities.
  •  An audit procedure shall be implemented to confirm the existence accuracy of transactions through checking the sample of transactions and its corresponding documents.
  • Closing bank balances shall be confirmed using the bank confirmations or statements provided as of that date.
  • Customer and supplier balances shall be confirmed by using their confirmation as third-party confirmation.
  • Physical inventory confirmation is one of the methods for inventories held at the end of the period.
  • Auditors may inquire about management confirmation for the contingent liabilities at the end of the audit work.
  • The auditor examines sales invoices of the client, supporting documents for the purchases and expenses or can check the payments vouchers for the audit period.
  • The auditor shall recompute or recalculate depreciation calculation or provision for end-of-service benefits.
  • Auditors shall issue their audit reports after they examine the company’s financial statements and related documents. This includes the auditor’s opinion, financial statement, management report.

United Auditing - the Audit Division of Emirates Chartered Accountant Group is one of the finest Audit firms in Abudhabi & Dubai having Our qualified professionals at various levels of execution of audit assignments ensure that the requirements as per International Reporting Standards, Auditing Standards and relevant legal provisions are properly complied with.

Are you looking for Audit firms in Abudhabi, Dubai, or any other Emirates in the UAE? 

Reach us – we are happy to assist!

Audit services in Abudhabi

CA Navaneeth Mattummal, Manager – Abu Dhabi Branch
+971558892750
nav@emiratesca.com

Audit services in Dubai

Pradeep Sai, Partner
+971556530001
sai@emiratesca.com

Audit services in other Emirates

Praveen Raj. A Senior Manager
+971508873115
praveen@emiratesca.com

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