Six Common Audit-Related Mistakes for Businesses Must Avoid (1)
An external audit provides the best level of assurance for a company over its financial statements. Hiring experienced and qualified audit firm in Dubai is essential for the success of an annual audit. However, an audit may turn out to be a disaster if your company fails to meet certain critical requirements. Avoiding certain audit related mistakes or deficiencies is vital for a successful audit. Read ahead to know what those mistakes are:
• Lack of System Descriptions
Auditors need to document their client’s accounting process and you must help them to achieve this goal. If your organization has thorough system descriptions auditors can ensure that they understand the process by reading them. If your company lacks solid system descriptions, auditors in Dubai will be forced to interview people on the accounting team to clearly understand the process. It wastes the time of both the auditors and your management and staff.
• Frequent Manual Workarounds
If your company has a large number of transactions that follow an identical process, the auditors will be happy as it can significantly minimize the amount of testing they need to do. However, the auditors will find it tough if the company has a lot of manual overrides, workarounds and exceptions. In such a situation the auditors may require going through several of those transactions as well to make sure they don’t have adverse accounting effects.
Companies with handwritten bills and records make matters even worse for audit firms in Dubai. Even if your company uses a lot of paper, just make sure that you digitize all of them before the auditor knocks at your office door. Digitization alone can help you uncover errors and fix them before they show up in the report.
