It’s time for the audit…again! How to prepare for an annual audit.
Try not to look at your company’s annual audit as an ordeal designed to complicate your life.
An annual audit is an irreplaceable tool to ensure that your financial procedures are in order. It should give you confidence in the strength of your financial systems.
Your auditor should be viewed as a resource, not an adversary. The annual audit is just a verification process of your company’s financial systems and statements. The auditor will look at the accuracy of the numbers and the processes and let you know if internal control steps should be taken to help protect your company against fraud. As a result of the audit, opportunities for improvement might be identified, leading to more effective management in the future.
Since auditors express an opinion on the broad financial statements, most of the detailed schedules they request are merely items your company should have as part of its normal accounting procedures
The auditor systematically and objectively obtains and evaluates evidence about the basic financial statement assertions contained in your numbers:
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The auditor may ask you to explain significant actual-to-budget and prior-year variances. Be prepared to discuss the results of the year based on your expectations going into the year.
Being prepared for an external audit will ensure the auditors work is carried out smoothly and efficiently, with the minimum disruption to yourself and your team, the audit process is quick, thus lowering you audit costs.
ZenFinance accounting team will assist with cleaning up your records, collecting documents needed, reviewing your Income Statement focusing on revenue recognition and expenses cut off, reconciling your Balance Sheet, eliminating inter-companies, addressing any other auditors’ requirements.
Contact ZenFinance Chartered Accountants team in Dubai today to learn more about advisory on external audit.