Business Services

Why Audit is Important for Businesses?

If you want to run your business smoothly, you need to have a proper checks and balances system in place, which operates as a gatekeeper on all the decisions and transactions. Many companies opt for internal and external audits to maintain the effectiveness of their internal controls. These audits identify loopholes in the system and any gaps that need to be plugged for the business to keep away from the risks of frauds and misappropriation by some nefarious employees or clients. Hiring an audit company mostly wipes out all of the concerns of the top management of a business and helps them in setting direction and devising strategies for the business. Read on to learn more about auditors in Silicon Oasis.

 

Audit is a MUST-HAVE

If you decide to opt for an audit, you are going to evaluate the effectiveness of your company’s internal controls, which are imperative for achieving the business goals. The audits also help the companies to get reliable and to-the-point financial reporting on the business operations, preventing the risks of a fraud, guarding against misappropriation of its assets, and reducing the cost of its capital. Some companies have a dedicated staff to conduct their internal audits while many others hire services of a professional audit company to do the job. In one way or the other, internal and external audits are compulsory for all businesses, whether big or small. Following are some of the advantages of going for an audit and how it adds value for all the stakeholders of a business.

 

Setting the Direction for Your Business

Building a proper audit system internally or hiring an audit company for the purpose is the best thing the management of company can do to set its future course of action on a strong basis. An effective audit system is compulsory for the company to achieve its corporate objectives as it allows the processes to get the best value out of internal controls like monitoring, supervision, prevention of irregular transactions, gauging ongoing performance of the staff, enhancement of operational productivity, and keeping proper business records. An audit process will suggest ways to improve efficiency by retrieving the missing documents, identifying the loopholes in the transaction system, and strategies to improve performance of the staff.

 

Mitigating Risks of Misstatement

The professional auditors are well-informed and well-equipped to identify risks of misstatements in the company’s financial records and reports. These audit reports allow the company to allocate and dedicate its resources in the right direction by identifying profitable business areas. The company will be in a better shape to manage its affairs prudently by getting informed about the status of its status and liabilities, thereby ensuring there are no risks of misstatements in records.

 

Since the UAE government has announced to impose Value Added Tax from January 1, 2018, the business and companies operating in the region have to get a better understanding of where they stand by generating fresh audit reports. Click here to find the best VAT consultant in Dubai.