An external auditor is an independent, unbiased third party who certify that the books of accounts prepared are accurate.
Many companies are failing for various reasons like one of the partners absconded with the money, no cash to pay salaries to employees, suffering huge loss due to poor management, investors withdrawing their funds etc. To build and maintain the trust of investors, it is very important to keep the business results transparent and submit financial reports annually.
Mere bookkeeping and financial reporting are not sufficient to gain such trust of shareholders. What matters is whether such reports are reliable and unbiased. There comes the role of external auditing and an efficient auditor. Some issues are listed here out of which your company will be facing at least one.
- Looking at the downward graph of the company’s growth, wondering where is all the money going and have no idea about the company’s expenses and costs.
- The company has an accounting department, three or four accountants, but still, the financial reports look suspicious and not credible.
- The partners/investors/shareholders of the company are never satisfied with management reports.
- One of your key staff acts suspiciously and is suspected of doing some fraudulent activities which affect the business.
- Vat returns filed correctly and complying with all laws, but still attracting penalties and fines.
- Fails to ensure whether the financial reports are being prepared and maintained as per the law and according to the IFRS.
- The company seeking additional financial assistance from outside investors and financial institutions as well but fails to prove the credibility and transparency of business results before them.
All these issues can be solved by an external auditor who increases the credibility, validity, transparency and reliability of your reports thereby gains the trust of investors and public including your employees.
To ensure the long-term growth of the company choose the correct auditor and make it a practice to get your accounts audited annually by an external auditor. Moreover, in the UAE, Companies law mandates the auditing of accounts for all companies in the mainland. For some forms of entities in the free zone like Free Zone Companies (FZCO) and Free Zone Establishments (FZE) also, the audit of accounts is necessary. However, some authorities are not enforcing the submission of an audit report annually. But be assured, the money you spend for external auditing will not be a waste and you will witness a happy and satisfying smile on investor’s face instead of question mark face.
If you are looking for professional auditors and reputed audit company in UAE, then contact Hallmark International Auditors. We provide auditing services such as statutory audit, internal audit, investigative audit, Due diligence audit, etc. Also, we offer various other services such as Liquidation, accounting, VAT, Excise and ESR services.