External Audit

A Qualified Team of Professional Auditors in the UAE, at Your Disposal

External auditing is a diligent check of records and/or procedures performed by a company-appointed, outside certified auditor in the UAE. An external audit can be conducted voluntarily, or it can be mandatory. All businesses registered in the free zones in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain & Ras Al Khaimah are required to perform external audits and present the audited financial statements to the free zone authority. The external audit is prepared to check the accuracy of statements and an organization’s true and fair financial standing.

An external auditor is a professional, independent third party that performs an unbiased review of the financial records of a company. The auditor must assess the organization’s records, including payroll, purchasing records and accounting. He or she also looks at the financial investments and the organization’s loan structure to identify any irregularities.

External Audit Process

An external audit comprises the following stages:

  • Appointment of the Auditor by the stakeholders.
  • Approval of the Audit Project.
  • Planning and audit strategy.
  • Collecting evidence.
  • Compiling the Audit Report.

The Need for an External Audit in the United Arab Emirates

The mandatory compliance with International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) has made the external audit report a important & a reliable document. The external audit report acts as a definitive financial document in the case of a license renewal, when getting a loan, and other such situations. The other benefits of an audit report are:

Independent expert suggestions

External auditors are trained and certified to evaluate and improve the business process to reduce the risks caused by improper financial data. As they are not related to the organization, there is an element of impartiality to the audit report.

Verification & Validation

A small business owner may not have thorough knowledge of accounting. They prepare simple accounting information, which is later reviewed by the external auditor. The auditor checks the information and provides insights on its reliability and validity. Accurate and valid accounting information can help business owners secure loans from lenders and investors.

Looking out for errors

An external audit helps an organization identify errors in its financial statements. Professional auditors recommend corrective solutions to any errors found in financial statements.

Assurance & Confidence

An external audit report ensures stakeholders that their financial data shows a true and fair view. It also enhances the reliability and credibility of the organization.

No two businesses are alike; they have different structures, different needs and different goals to achieve. At Level, we adapt and customize our services for each individual client, to ensure that they get the best advice and the best financial strategy for their needs. We have a team of highly skilled accountants and auditors in the UAE, and they are ready to share their expertise and wealth of experience to help companies grow. We believe it is the powerful combination of the best people, empowered by market-leading technologies, that enables us to deliver quality and value at a whole new level.

A Skilled Team of Outsourced Accountants & Auditors in the UAE

Our highly trained & qualified accountants and auditors possess a wealth of experience in their respective fields, are well-versed in the multiple aspects of accounting and auditing and hold extensive familiarity with the laws and regulations related to these tasks.

More than our skills, we are known for our commitment and professionalism. Our qualified & professional staff works closely with you, our esteemed clients, to gain a better understanding of your businesses, your objectives, and your manpower needs. Once all the factors are identified, we provide a wide range of solutions that best match your requirements.

By bringing innovation to the audit with our new technologies, we are improving audit quality and enhancing audit insight – two things our clients tell us matter most.

FAQs

Audit & Assurance

What is Audit & Assurance?

Audit & Assurance is an evaluation of an organization, its systems, and processes, and testing them based on statistical samplings. It is performed to ascertain the validity and reliability of financial information, and to provide an assessment of a system’s internal control.

An audit seeks to provide only reasonable assurance that the statements are free from material error. A set of financial statements are said to be true and fair when they are free from material misstatements.

Why is it important to engage an Audit & Assurance Service?

An audit is much more than a formality; it is a necessity to protect a business and encourage it to thrive. It is crucial to engage an Audit & Assurance Service to review the company’s financial status, system processes and internal controls, in order to assess the effectiveness and efficiency of these components. It would also increase accountability and transparency.

Why is it important to engage an independent auditor?

The external auditor serves the private interests of the shareholders of the company. An independent auditor is a neutral and impartial party who would be deemed to have no interest in the company. This would ensure greater accountability and transparency while reporting to the shareholder.

What benefits can a business get from a financial audit?

A business unit can benefit from an audit in the following ways:

  • Independent opinion
  • Protection of the rights and interests of shareholders
  • Better internal controls
  • Detection and prevention of errors
  • Verification of books
  • Detection and prevention of frauds
  • Loan facility
  • Moral check
  • Easy valuations
  • Facility for prospective investor
  • Satisfaction of business operations

After an audit is completed, the company will be able to develop a greater understanding on the handling of financial matters, preparation, and presentation of financial statements. An auditor’s report on the financial statements and suggestions for improvements would also be presented to the management of the company.

Would the audit process be too troublesome for my company?

The entire audit process can be divided into 3 phases. First is the proposal submission and approval, where Level would submit a proposal based on the key audit areas and discuss the key issues with the management of the company. Then, the auditor embarks on fieldwork to obtain necessary documents and financial statements from the management. The third phase includes the drafting and submission of the final auditor’s report to the management. This entire audit process would be translated into a cohesive program to the mutual consent of both the Management and Level.

When will the audit process begin and end?

The audit process normally commences in January, if books are closed at the end of a calendar year. It normally ends within the same month. The actual time schedule of the audit assignment will be discussed and agreed upon by both the company’s management and Level.

Why should a company engage Level as the independent auditor?

The increase in demand for reliable financial information has put audit and assurance services in the spotlight. Here at Level, our main aim is to give our clients a clear insight into their corporate strategy, business processes and financial reports. We provide a range of auditing, reporting, corporate governance, and risk management services. We are large enough to offer a comprehensive package and yet small enough to ensure personalized treatment of each individual client. At Level, we focus our wealth of knowledge on the goals of each client. We go beyond the numbers to create strategies for financial success.

How much would it cost to engage Level as an independent auditor?

We are one of the leaders in providing quality accounting, auditing, and consulting services in the United Arab Emirates to businesses and individuals. Our fee is based upon the volume of transactions, the business complexity, and the annual revenue/ turnover of the company.