Whether your company is a recent establishment or a really old one, regular audits are necessary to keep your organization’s accounts updated and in compliance with the laws. The process provides third-party assurance to the stakeholders that the company’s financial statements are in an order allowing them to evaluate and improve risk management, control and governance process over the matter.
Up to date bookkeeping is essential for auditors to have clarity over your finances. Tax consultancies in Dubai provide bookkeeping services for your SMEs, helping them keep track of all their finances and the rules that govern them.
Occasionally, external audits are conducted on a company’s accounts. Every external audit is different as it depends on the regulations and standards against which you are audited. But still, it can be fairly stressful to prepare for an external audit and achieve a favourable outcome. So here are 5 tips to help you prepare well for an external audit.
Getting all the documentation in one place
Prior to facing your external audit, get all your internal procedures and documentation in one place. Your external auditors are sure to ask for supporting materials as part of the audit like policy documents, financial statements, and process related artefacts. Make a list of necessary documents on the existing internal control structure and review it beforehand. Such a gap analysis will bring all your documentation to the point, improving their accuracy.
Learn the industry standards
It is essential for you to be aware of the industry compliance standards. The audit is performed on the basis of an external standard that is commonly used throughout the industry. Take time to learn and understand this as your accounts will be audited against it. This will help you foresee how your external auditors will approach your finances and help you take the necessary steps to avoid unnecessary complications.
Involve your Experts
No one knows your finances and internal processes better than your subject matter experts. If your bookkeeping is done by some of the best tax consultants in the industry, involve them in your processes. Based on the standards you need to comply, find the right expert to aid the external auditor review and evaluate through your business processes and security regulations. Involving the experts can help you get the best action plans to face the audit. Allocate enough resources to help your specialists prepare for the upcoming audits.
Ascertain your internal procedures
With the help of your subject matter experts, search and revise relevant internal processes and make sure that they are following the industry compliances. This will help you identify gaps in your processes if any which do not meet the current benchmark. Let your tax consultants and accounting experts aid you in bring all your processes in place and under the standards necessary.
Tax consultancies in Dubai can help you prepare for your external audits with expert advice and bookkeeping services. Contact them today for a consultation.