Different Challenges faced by the company on the Audit front



 A set of predefined rules and regulations are made and adopted by the management or company board. Various companies worldwide operate under a set of pre-defined rules and regulations. Hence, the companies need to conduct any business with full transparency and fairness. Every country has different company laws and various businesses are governed by these company laws. These businesses are required to submit their periodic audits to concerned authorities and the company’s management. A business firm can hire the best audit firms in Dubai to resolve the issues.

Mentioning below the different challenges faced by the company on the Audit front :

1. Legal Requirements & compliance: As there are many Freezone companies in UAE so authorities in the UAE made it compulsory for such Freezone companies and Freezone Establishment to submit the audited financial reports annually. Only upon the submission of the annual audit report, the free zone license can be renewed. To prepare liquidation documents at the time of Company Liquidation, Audit reports are required for the company liquidator.

2. Accounting Expertise and Bookkeeping: A financial Auditing in a company requires a lot of accounting and auditing of the company records. Small and Medium type businesses adopt poor bookkeeping and accounting practices that include errors. As they cannot afford full-time CFOs or experienced management accountants to provide professional guidance in bookkeeping accounting. Therefore, ineffective and inefficient bookkeeping and accounting can prove a hurdle for companies without expert advice.

3. Third-Party Requirements: As we are well aware of the fact that free cash flow and Capital availability play a very important role in the growth and success of any company. Many small or medium-sized companies utilize various lenders such as banks and other non-banking financial institutions to fulfill their monetary requirements. The companies need to provide a proper account of books that is audited by a qualified audit firm to these financial institutions to lend money from them.

4. Process Efficiency and Fraud Proof Internal Controls: To increase the good reputation of the company in the market a good audit report with minimal findings is very important. It also increases the trust of the shareholders.

5. Audit Plan & Execution: A proper audit planning and its execution with minimal disruptions to everyday business transactions are very important for any company. To plan the audit dates and detailed schedule Companies should coordinate with the Auditors. Improper Planning or delay in the audit process will result in an inappropriate report and it will show the company’s bad reputation in the market. Many companies hire internal audit firms in Dubai to resolve the issue.

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