Business owners can have their businesses audited in two ways. The first option is to have an internal audit while the second option is to hire a team of external auditors. The basic difference between the two forms of audits is that internal auditors are employees whereas external auditors are independent. This is why audits conducted by the external auditors hold more value and weightage than the ones conducted by a team of internal auditors. However, this isn’t anyway suggests that the audits conducted by the internal auditors hold no value at all. Businesses and companies worldwide employ a team of internal auditors to help them get the required compliance and bridge all the gaps in their business system. The Dubai audit firms have been providing external audit services to the local businesses and have built a massive reputation in this regard.
The external audits are the ones which give investors, regulators, and the general public the confidence on a certain business and its financial data as well the claims a company makes in the statements. The external auditors’ opinion is regarded as true and authentic which is why most of the top fortune 500 companies opt for external audit every year. The external audits are a package of a company’s financial statements, which are checked and verified by an independent and autonomous team of auditors. Companies obtain many benefits through the external audits, some of which are stated below.
Immediate and Long-Lasting Benefits
Some of the benefits of an external audit are short-term while others are long-term. The central and most important short-term benefit of an external audit for a company is to identify any operational discrepancy which can be rectified or improved immediately. Many companies have faulty tax data and statements, so an external audit helps them to work out tax filings and avoid any tax penalties in a short-term view. The long-term advantage of an external audit is the assurance to the board of directors and the top-tier management of a company about efficiency of accounting controls and procedures. Another crucial long-term benefit is an increased trust of public, regulators, and investors on the company’s financials and future outlook.
The auditors use accounting as a primary tool to record, report, and analyze a company’s financial health and suggest ways to improve procedures and warn against any compliance concerns with the regulator. Click here to find out more on the subject and select the best audit company in Dubai.