Financial Statement Audit

After establishing as a registered company, it’s essential to file annual financial statements accompanied and attested with an auditor’s report. According to the commercial companies Law, an audit of accounts is necessary for all the businesses in UAE. 

What is a financial statement audit?

A financial statement audit is the independent examination of a company’s financial statements and its concerning disclosures by auditors. This provides a true and fair view of the company’s financial performance. The auditor’s report is accompanied by financial statements when they are issued to the recipients. 

Financial Statement Audit

What is the purpose of financial statement audits?

A&A Associate supports your company’s financial statement audit by adding credibility to the reported financial position and performance of the business. 

Security and exchange commission requires that all publicly registered companies must file annual reports for audit. Similarly, lenders require financial statements to which they lend funds. In other case, suppliers also require financial statements before they are willing to extend their trade credit. 

What are the objectives of financial statement audits?

What is the purpose of financial statement audits?

Financial Statement Audit

Planning and risk assessment:

We do a methodical planning of how to carry out the audit by gaining an in-depth understanding of the business and its environment. 

We do a methodical planning of how to carry out the audit by gaininInitially, we analyze and evaluate the risk of misstatements in the financial report. The audit procedure is completely customized based on the organization and its needs. In the case of high-risk, rigorous accounting procedures shall be applied and in case of low risk, we have lenient audit procedures. g an in-depth understanding of the business and its environment. 

Internal controls testing:

Internal control is basically the second phase of a financial statement audit. It refers to the set of activities and procedures integrated into the system to avoid fraud data in relation to the transactions and assets. Segregation of duties, authorization process and safeguarding of assets is the main concern in internal controls. In case of strong internal control, audit turns out less lengthy and detailed whereas a weak internal control systems would require diligent audit procedures. 

Financial Statement Audit

Substantive procedures:

According to the planning and risk assessment, substantive procedures will be performed for each line item booked on financial statements or disclosed in the notes to accounts.

Our services at A&A Associate would include the following few procedures as well as others as per your business needs:

Financial Statement Audit

What is the importance of financial statement audits?

A&A Associate focus on the basic principles governing a financial statement audit,

Apart from the above listed; we adhere to the audit standards and assure complete support to our clients!!

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