An audit is a crucial aspect of a company’s financial management. It provides an independent evaluation of a company’s financial statements and internal control processes. The audit process aims to ensure that Top audit firms in UAE‘s financial statements provide a true and fair view of its financial position, performance, and cash flow. In this blog post, we will explore what are the various documents required for an audit of a company.
Financial statements
Financial statements are the primary documents that an auditor reviews during an audit.
The financial statements that are involved in an audit comprise the balance sheet, income statement, and cash flow statement. The income statement shows a company’s revenue and expenses over a period, while the cash flow statement shows the company’s cash inflows and outflows during the same period.
General ledger
A general ledger is a company’s master account record that provides a complete record of all financial transactions. It includes details of all the company’s accounts, such as cash, accounts receivable, and accounts payable. The general ledger helps the auditor to verify the accuracy of the financial statements and ensure that all transactions are recorded correctly.
Bank statements
Bank statements are necessary for an audit because they provide evidence of a company’s cash transactions. They show all the deposits and withdrawals from a company’s bank accounts, including details of any checks written or electronic transactions made. The auditor can compare the bank statements with the general ledger to ensure that all transactions are accounted for correctly.
Invoices
Invoices are documents that a company sends to its customers to request payment for goods or services rendered. Invoices provide evidence of a company’s sales revenue and should be kept as part of the audit trail. Internal auditors Dubai can compare the invoices with the general ledger to ensure that all sales are recorded accurately.
Purchase orders
Purchase orders are documents that a company uses to request goods or services from its suppliers. Purchase orders provide evidence of a company’s purchases and should be kept as part of the audit trail. The auditor can compare the purchase orders with the general ledger to ensure that all purchases are recorded accurately.
Payroll records
Payroll records are necessary for an audit because they provide evidence of a company’s payroll expenses. Payroll records include details of all the payments made to employees, including salaries, wages, and benefits. The auditor can compare the payroll records with the general ledger to ensure that all payroll expenses are recorded accurately.
Inventory records
Inventory records are necessary for an audit because they provide evidence of a company’s inventory levels and values. Inventory records include details of all the goods that a company has in stock, their cost, and their selling price. The auditor can compare the inventory records with the general ledger to ensure that all inventory is accounted for correctly.
Tax records
Tax records are necessary for an audit because they provide evidence of a company’s compliance with tax laws. Tax records include details of all the taxes that a company has paid, such as income tax, sales tax, and payroll tax. Audit services in Dubai can review the tax records to ensure that the company has paid the correct amount of taxes.
Board meeting minutes
Board meeting minutes are necessary for an audit because they provide evidence of a company’s decisions and actions. Board meeting minutes include details of all the decisions made by the company’s board of directors, such as the approval of budgets, major investments, and changes to company policies. The auditor can review the board meeting minutes to ensure that the company’s actions are in compliance with its policies and procedures.
Summary
In conclusion, an audit is a critical aspect of a company’s financial management, and the documents required for an audit are essential for ensuring that the audit provides a true and fair view of the company’s financial position. If you are looking for Internal audit firms in Dubai or External auditing in Dubai, A&A Associate LLC could help you with the necessary steps to conduct audits in your company.