Accounting & Auditing – Importance

 

Accounting -An accountant predominantly furnishes in-depth analysis and accurate reporting on financial records. They are versed to describe the reality of the finances of a company. Accountants also work directly with people to inspect financial records for tax filing for individuals or businesses. The scope of work for the accounting firms in Dubai includes specific and exacting details, day-to-day operations, financial accuracy, and taxes.

Auditing – Auditors usually verify the work done by accountants by examining the financial statements prepared by accountants to ensure they depict the company’s financial situation accurately. An auditor in the auditing firms in Dubai can work internally for a specific company, auditing firms, government, and regulatory bodies like JAFZA auditors in Dubai or for a third party, to audit various businesses.

The skills of Accountants and auditors lie in numbers. They must be good with numbers. They often work in teams to conduct tasks such as preparing and reviewing financial statements, tallying inventory, and forecasting future sales.

Importance of Accounting & Auditing – Both accounting and audit are pivotal for the growth of a company. They are instrumental in keeping an accurate financial record of any business.

Auditing

• Auditing is more of a specialized service of the accounting world.
• An examination of the accounting and financial records is undertaken by the auditors to determine if the company or the business has conformed its operations to the specified laws.
• Auditing financial statements on an annual basis will add credibility for your accuracy and good practice to have in place.
• An auditor can make significant contributions in identifying errors in bookkeeping, frauds, or wrongdoings.

Accounting

• Accounting helps a small business or a complex organization in keeping track of all the financial activities can be a daunting task.
• Accounting maintains all records of financial activities taking place.
• It keeps the management updated about the company’s performance.
• It also helps in identifying the areas of underperformance and requires corrective measures.
• The information derived from accounting aid in the long-term project planning of the business.
• The company’s financial position determines how much credit can be taken and at what rates, etc.
• Investors to get a clear picture of the risk and opportunity in dealing with the company.

Different types of audits.

Different categories of audits are conducted, review and report on a department, process, policy, or function within a company.

• Internal audits help executives and stakeholders get an accurate picture of a company’s finances based on the investigations of the following
  • Financial accounting and reporting.
  • Policy and legal compliances.
  • Effectiveness and conformance to current processes and procedures.
  • Operational concerns
• External audits are conducted by third-party auditors. These auditors adhere to Generally Accepted Auditing Standards (GAAS)
• Tax Audit – These audits are done to verify the information filed for the company’s tax returns. It is an external audit and is done by audit firms.
• Financial audit -These audits focus on the company’s financial status where auditors verify records, including expenses, revenue, investments, and assets. This information is compiled for investors or shareholders to take necessary decisions related to investment etc.
• Operational Audit – They are designed to evaluate and analyze an organization’s operations, including policies, procedures, goals, philosophies, and culture. This helps to identify gap areas, inefficiency, and suggestions to improve and streamline processes.
• Compliance audit – This audit ensures evaluating compliance to internal and external regulations including company standards, local regulations, and state and federal laws. compliance audits help to maintain safe and fair working conditions, ensure product quality and minimize risks.
• Information system audit – These audits review the organization’s information technology to evaluate the use of best practices for systems management and security. Software, IT, and other tech companies rely on information system compliance audits to:
• Ensure customer data is secure and there is no breach of security.
• Hacking protection and prevention.
• Evaluate data processing technology.
• Recommend software and equipment for specific business needs, such as project management

There are several other audits conducted by VAT Consultancy services in Dubai to enable the companies to build a robust system for the organization. This proves beneficial for the overall growth of the company. TGS KOYA offers Audit services by professional auditors and is equipped to effectively assist them with in-depth information about suitable policies and procedures.