Many different organizations go about their businesses in various parts of the United Arab Emirates including Abu Dhabi, Dubai, and other states. Every organization claims and tries to be fair in terms of its dealing and accounting and financial statements. There are some possibilities of unfair means and hiding true profitability announcements to reduce the taxations and other profit share and bonus announcements. Audit and accounting firms in Abu Dhabi and other parts of the world are formed to regulate standards of financial statements with proper laws, rules and regulations provided by government and regulatory authorities. Following are the main purposes of performing an external audit every end of the year.
Objectivity: The objectivity of an external audit is to provide a transparent picture of the organizational transactions, business transmissions, and fair and true expressions of financial statements.
Answerability: Financial statements are prepared by internal accountants and financial managers who are responsible to maintain high accuracy in terms of financial transactions recording and resource keeping but somehow they all are answerable to the owner of the organization. Small to medium and larger organizations gradually include partners and shareholders who influence the transparency of financial records therefore the accountancy and audit firms are very important to check the accountability of fair recording and right categorizing of each and every business folio.
Reliability and Consistency: External auditors are fair and reliable firms which are authorized to determine the accuracy and consistency of the financial statements. This is not only important for owner’s business reputation but also for the end users, shareholders and investor’s trust and reliance on the business. Tax authorities also value the external audit statement for finalizing and enforcing taxations of year-end profits of the organization. Every business needs financial institutions for loans and other borrowings. Their credibility and fairness in business is only scrutinized by external auditing for future financial borrowings and other import and export needs. Even internal auditors also reevaluate their risk managements and other business profitable means after finalizing external audit statements.
Accountability and audit firms provide rational assurance and accurate judgment of financial statements which is very important for avoiding any misconception and integrity of business. It saves the organization from any profitability loss or excessive time outweigh to correcting financial statements after breaching any regal rule and regulations. To understand more please visit us for better understanding of the financial audits.