Considering the concept of Auditing, it stays in forefront of finance. Looking into the explanation of the actual meaning of auditing, it deals with the review or analysis, of a processor quality system, to ensure compliance with requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step. Hallmark International is considered to be one of the best auditors in Dubai.
Basically, there are three separate kinds of audits: product (which includes services), process, and system. As an experienced firm in auditing services, Hallmark International Auditors provides all the three types of services in auditing. Auditing helps in rechecking the performance of the company as well as the efficiency of the particular department. Apart from the basic three types of auditing, there can be another classification such as internal or external, subject to the interrelationships among accomplices. Internal audits are performed by employees within the organization and the outdoor audits are performed by an outside agent or an auditing firm. Other types of audits include: Product audit (An inspection of a particular product or service), Process audit (An authentication that checks on the sequences working),first-party audit deals within an organization to measure its strengths and flaws against its own actions or approaches and/or against external standards adopted by (voluntary) or imposed on the organization, a second-party audit is an outside audit performed on a contractor by a customer or by a constricted organization on behalf of a customer and a third-party audit is performed by an audit organization independent of the customer-supplier relationship and is free of any conflict of notice. Independence of the audit organization is a key component of a third-party audit. Third-party audits may result in the documentation, registration, recognition, an award, license approval, a citation, a fine, or a penalty issued by the third-party organization or an interested party
Due diligence audit is an audit that is done before making an investment or getting into contract to check whether or not is the investment worth your time and money. People hire professional auditors for this task as it could require special knowledge of the appraised industry and other expert knowledge.
This is normally carried out in the scenarios of merger, acquisition, and privatization or before getting into a contract or an agreement with another party.
The other party shall provide audited financial statements and copies of bank statements for the business checking, savings and investment accounts for the past three years. You’ll also want copies of vendor and supplier contracts, the accounts receivable, an accounts receivable aging spreadsheet and accounts written off as uncollectable. Get copies of all income tax records for the past seven years to be sure there are no outstanding taxes. This makes due diligence a complex process.
Due diligence is not limited to financial health but extends to areas like:
- Production due diligence audit
- Marketing due diligence audit
- Management due diligence audit
- Industry environment due diligence audit
- Information Systems due diligence audit
- Reconciliation due diligence audit
- Legal/environment due diligence audit
- Compatibility due diligence audit
You would want experts like Hallmark Auditors to help you make the best investment decision and we make sure you never go wrong when we are with you.