How does a comprehensive plan produce effective audits?
An audit plan is the outcome of audit planning, which involves comprehending the business and clients, creating a risk assessment plan, and listing the evidence to be collected. The planning remains an essential part of the audit process as it allows auditors to perform an audit with lowest risk levels and aligned with business objectives.
Without sufficient audit planning, the audit process may be more time consuming and maybe more harmful to the working of Emirati organizations being audited, affecting their reputation and position in the Emirati corporate world, constantly growing and providing competition.
The process requires meticulous planning, including the nature, timing and direction, engagement of the team members, and reviewing any work performed. It's essential to plan ahead of the audit to prevent any later issues with clients and to ensure that the costs spent are reasonable, especially in the case of smaller businesses.
Even the best plans can sometimes fail in the hands of incompetent audit firms. For a sturdy audit plan and execution, opt for the services of Top audit firms in Dubai to help out. The article lists ways in which a comprehensive audit plan may help with effective audit processes.
How to audit planning can help create effective audits
From focusing on critical activities to prevent time wastage, to ensuring that the auditors and the client company are on the same ground when it comes to the requirements and the results of audits; there is a lot that a comprehensive audit plan can contribute towards. Read on to know more about how audit plans can create effective audits.
By removing any misunderstanding
By meticulously planning each aspect of the audit process, a detailed and more comprehensive picture of the requirements and the deliverables of the process can be conveyed to both, the client and the auditor. The exchanged information allows the two entities to be on the same wavelength relevant to the audit plans
By helping recognize risks earlier
An analysis of any expected values of audits is not just the only essential. It's also critical to display this information in a format that's legible and understandable. Planning also allows the compilation of essential documents that will be required during the process. The client will be able to timely develop the documents that will be required by the auditors.
Proactive identification of risks also helps develop the right kind of communication with the client, to prevent any misinformation.
By disallowing an “over audit”:
In the presence of a comprehensive audit plan, its impossible to "over-audit"; the terminology used to define and meaningless audit procedures that are unnecessary and contribute only to the waste of time.
The plan created should be extremely thought out and focused on the essential requirements of the process, preventing wastage of time of both, the client as well as the audit firm.
Take Away
It's essential for audits to be effective, comprehensive and meticulously planned to achieve the right results and the best audits are those that have been planned diligently.
To develop the best audit processes and to ensure the planning is done right, it's critical to opt for experts in the field. Opt for the top audit firms in Dubai to help develop an audit plan that's not only comprehensive and detailed but allows the clients and the auditors to be on common ground when it comes to the results of the audit.
Useful Accounting Tips And Tricks To Keep Your Business Thriving
When you start a business, then you want to have a strategy of where you see your business 10 years down the line. Often the company with no robust vision do not extend to more than a few years, and one of the reason can be that there were loopholes in managing the financial elements.
The moment your expenditures are higher than profits you need to see that as a warning sign. You need to either check on everything or just manage your stuff smartly or be ready to shut it down. With a number of companies arising everyday neglecting the accounting and bookkeeping best practices is a poor decision.
If you are not skilled, then you can always opt for the professional help from experienced people in the industry. For example, for your UAE-based business, you can approach the best accounting firms in Dubai near you so that they will handle your finance related matters while you plan for the development of the company.
This article will share some accounting related tips and tricks for entrepreneurs to help your business grow and prosper in every possible way.
Handy Accounting Tips And Tricks For Startups
When you are working on all new projects, then you might have put the least emphasis on the accounting and bookkeeping element for your business. But take a moment and think that if you do not get financial detail right then how you would plan the new projects.
When it comes to running a successful business, then you need to follow the right process and standardized industry practices.
Following are some practical bookkeeping organization tips to help your business grow by leaps and bounds:
Keep Business Expenditure Distinct
When you are the owner of the company then you need to keep one thing very clear that the expenditure for business-related elements is going to be different as compared to your personal expenses. For example, you should not be buying a luxury trip for you and your family to an exotic location and include that in your business expense.
Know Where The Money Is Going
The second trick for the best bookkeeping practices for small business is knowing where and when the money is spent. Categorize all expenses and label them in a way that they become a transparent track record. If you do not record the cash flow then soon everything is going to be messy leaving you with a lot of question of when and why this happened.
Track Invoices Or Receivables
Account payable frauds or other types of scams are common so you need to keep your mind and eyes open because if you are not careful about your business, then no one else will. Keep strict monitoring on the invoices and receivables so that there is no chance for frauds.
When you have the track of invoices, then you will know how much you need to get paid from vendors and investors.
Sign Up Expert Services
The last tip is that when you are not sure about the skills and the basics of bookkeeping and accounting, then you should not even attempt to do that. You do not want to be an example of the idiom; Bad workman blames his tools because once you have mismanaged or poorly handled the accounting without expertise, then you will blame everything around you.
Save yourself from that time and opt for the best accounting firms in Dubai to have a standardized and best practice in the industry.
Take Away!
Handling business finances can be tricky, but if you are meticulous, then you definitely can pull it off really well. Use the article as a baseline guide to establishing a robust accounting process so that your business is thriving like anything.
Read moreAll You Need To Know About Audit Frauds
According to a source, UAE’s State Audit Institution set up in the year 1971, revealed financial irregularities of about Dh60 million, last year. The inconsistency in the finances was dominant in public procurement contracts. Numerous employees and accomplices were found to be involved in the fraud!
This is just tip of the iceberg for accounting frauds in the UAE, from small scale book keeping to organizational audit frauds; the world of fraudulent activities is vast!
Determining frauds and parties involved requires the expertise of the best accounting firms in Dubai that provide consultation along with audit services to help firms regulate their finances. The article below talks about the types frauds in audit and the response of a competent audit firm.
All About Audit Frauds In Organizations
Whether it’s the top management involved in jumbling up numbers, or the lower level employees out to get more share than they deserve, companies may find themselves experiencing audit frauds time and again. Timely detection and response remains essential to ensure the company remains functional and no permanent damage occurs. Read on to know more.
Audit frauds may be characterized as:
Fraudulent Financial Reporting
Frauds in financial reporting are usually committed by the senior management of an organization. The internal perpetration benefits the company itself. Auditors and auditing companies consider these serious frauds that require immediate attention.
Misappropriation Of Assets
Usually, the lower level employees are responsible for carrying out this type of audit fraud. Committed at lower levels they are damaging to the organization and beneficial only to the individuals committing them.
What Is The Audit Fraud Triangle?
The audit triangle refers to the conditions that prevail in organizations at the time of the frauds being committed, often acting as contributors towards the fraud:
Pressures And Incentives
- Companies that are under continuous pressure to meet with the expectations set by investors for analysts.
- Performance based bonuses and net income along with any stock options presented to employees in the form of incentives, may also be significant contributors towards employees committing such frauds.
Opportunities For Committing Fraud
- The top management or the board of directors may not be as involved as it should be towards implementation of ethical policies and morals leaving little resistance for employees.
- When significant estimates and judgments are involved in accounting, it gives rise to numerous opportunities for fraud too.
Problems That Arise From Attitudes
- In case the management of the organization is extremely careless and allows aggressive risks. Unrealistic forecasts of the management make it harder for targets to be met.
- Ethics in the top management are poorly demonstrated which gives fraudsters the leverage to rationalize their fraudulent schemes.
Auditor’s Role In Detection
In case an auditor finds opportunities for fraud in an audit. They will focus on risk assessment procedures and concentrate on the risk assessment.
Auditors maintaining their skepticism need to inquire the audit committee about the management if they notice strange behaviors among certain employees. Since it's their job to determine who may be involved.
Detection of audit frauds isn't just about any anomalous interconnections observed in numbers and books, but it also involves the identification of any hardships and employee patterns exhibited whether financial or otherwise at the time.
Moreover, the auditors observe the fraud triangle and determine any red flags; incentives or pressures that could force employees to perform such activities. Industry data is also compared to see what the trend generally was and will be in the future.
Auditor’s Responds By:
- Collecting documents as evidence
- Obtaining evidence from other parties, apart from the client
- Increasing sample size to certify findings
- Performing procedure towards year end
- Verifying values in financial statements
Concluding Remarks
From planning to implementation, auditors ensure a comprehensive methodology when determining any malicious activities. In addition, it's only the best accounting firms that can help clients understand what type of audit frauds are being committed at their organization.
Choose the best accounting firms in Dubai and get your firm audited not only to ensure compliance but also to determine any fraudulent activities!
Read moreTypes Of Accounting Firms Your Business May Need
Accounting firms have an essential part to play in business settlement. They handle important accounting and financial tasks, regardless of the size of the business. Management of taxes, acquisitions and mergers, forensic accounting are a few essential functions that accounting firms perform.
As the UAE’s corporate circle expands to accommodate growing businesses the importance of accounting firms and accounting policies have become more prominent. Hiring specialized accounting firms performing the right function, according to the financial needs of a specific business or service providers has become critical.
Once the core financial requirements have been recognized, it critical to opt for the best accounting firms in Dubai for your organization. The following article highlights the different types of accounting firms and what tasks they can perform for your business.
Types Of Accounting Firms
Just like other service providers specializing in different genres, specialized accounting firms also have expertise in various disciplines. Depending upon the needs of your organization, the choice of the right accounting firm is more natural to make in the presence of the best ones in Dubai. Read on to know the different types of accounting firms in Dubai:
Bookkeeping
An accounting firm that provides these services is usually a small company that has only a few employees. It is a relatively small company that works on minor accounting tasks for firms.
These small-sized firms help clients with basic accounting. The accounts are then handed over to the CPA (Certified Public Accountants) firms for further, more complicated tasks. Services that a bookkeeping company may provide include:
- Accounts receivable
- Accounts payable
- Preparation of financial statement
- Account write-ups
- Reconciliation of banks and credit sales
- Tax preparation for small businesses
- Payroll handling and preparation of loan packages
Forensic Accounting
By implementing accounting skills and legal policies, forensic accounting firms assist in uncovering fraudulent and illegal activities. Although they work with federal and law agencies, private firms may also hire them. In case employers file a case against their employees, speculating fraudulent activity, forensic accountant are hired to look into the matter.
Along with the determination of the trails, they also testify in court and present evidence of any ill deed or practices performed by the employees.
Tax Accounting Firms
Catering to companies of all sizes, a tax accounting firm has specialties in the calculation of taxes. Tax accounting firms need to ensure that the employees they hire are CPAs and should be up to date with UAE’s tax laws both past and current.
Employers often require their accountants to stay up to date with the tax laws, accounting software and any tax planning policies and strategies being implemented.
Public Accounting Firms
These firms work in the domains of audit, management and consultation of taxes and hire CPAs (Certified Public Accountants) for the work. Accounting tasks are completed by public accounting (the big 4) and other firms depending on where you’re located. Local and regional accounting firms can handle audits and accounting tasks for their clients.
Take Away!
Whether you’re a big firm or a small one, you’re short on time! Considering the time constricted needs of organizations today, accounting firms are working to bring different services under one roof. Opt for the best accounting firms in Dubai, and they can offer you comprehensive accounting services for your business! Save time and resources with the best firms in the UAE!
Read moreWhy should entrepreneurs should outsource accounting and bookkeeping?
No business is going to run without finances and keeping track of funds is the most critical thing if you want to grow in every possible aspect. The market is competitive, and a small error in financial stuff can cost you business.
Bookkeeping and accounting both are essential for a business and even more important if you are just starting off. The business idea might be unique, but you need to keep an eye on the financial aspect. Bookkeeping is basically the recording of the financial transactions which are related to business function. Accounting is a bit different because it is about interpreting, classifying, reporting and summarizing financial data.
When you have just started off, then you need to be wise about who is responsible for bookkeeping and accounting. If your business is located in the UAE, then you can easily hire some professionals, and it is the best decision. Looking for some professionals to help you in accounting matters for your new business then hire bookkeeping and accounting firms in Dubai because that is the best option out there.
If you are not convinced whether you should outsource the services or not then you should read the article till the end.
Reasons to outsource accounting and bookkeeping:
Entrepreneurs often face challenges because their resources are limited, but goals are big. They have to achieve the status in the given resources, so they are not into keeping the financial tracks which is a mistake.
Outsourcing might seem scary but believe you me outsourcing will reap more benefits than actually doing it yourself. Following are some reasons you should outsource accounting and bookkeeping being an entrepreneur:
Cost efficient:
Being entrepreneurs as much as you loved the idea but you would want to save as much money as you possibly can. At that point, you would think that outsourcing is an added expense, but in reality, it is not.
For example, if you hire someone, then they will need a salary and added benefits which will accumulatively become more than you think. However, if you outsource the company, then it might half of the amount.
Expert’s insight:
If you outsource the services, then you will have experts in the industry do the job for you is a plus point. Being the owner of the budding idea you might not be aware of the industry trends and the practices in accounting and bookkeeping. In this case, having experts do things for you to ensure that you are following the trends in the industry.
Focus on other elements of the business:
When you hand over one big task to the professionals, then you can actually check on the other aspects of the company. This way you can stay focused and invest your time in things which can help the business grow and meeting with the clients. For example, if you have time, then you can think about your next products and services.
Last remarks:
Accounting and bookkeeping are crucial for any given business but holds more importance for entrepreneurs as they are new to the concept. If you are new to the industry then take the professional help from bookkeeping and accounting firms in Dubai - they are not only expert in their industry, but their professionals are also team player.
