Checking whether your company’s financial records are in order or not is essential from time to time. For this purpose, if you have a company which is related to the government, you should conduct a statutory audit. Firms which are subject to conducting this sort of audit are banks, insurance firms, brokerage etc.
How Can A Statutory Audit Provides Benefits to a UAE Firm?
Mainland vs Free-zone
If you’re having a mainland company, then it becomes a compulsion for conducting a statutory audit. Due to this, you’ll be able to ensure the public that your company adhere to the rules and regulations. Remember that you’re a free-zone company, then there may be certain requirements of conducting it.
Before you apply for a loan in bank and do any investments, conduct a statutory audit. This will provide an advantage letting them know that your financial records are correct. Moreover, it helps increase the authenticity of your firm in front of those people as well.
Statutory audit can help improve credibility as your company presents a transparent picture of your business activates and current position. Furthermore, you’ll be seen as a viable business as your financial reports will be free from error, fraud and misinterpretation. Not only that it also minimizes the risk of fraud in your organization.
It proves to be beneficial in the course of share of transfer and building trust. It can play an integral role to determine the accuracy and reliability of the accounts and transactions. As it confirms your company’s validity, the trust of shareholders, banks and government will also increase.
When auditors keep on working on setting your financial reports correct, it will save time and improve efficacy. In that period, they can think of planning other effective strategies. Furthermore, they can come up with suggestions and recommendation to improve business operations.
Conclusion
Conducting a statutory audit is beneficial in presenting the true and fair assessment of your business financial statements. Moreover, it helps to retain the confidence of the public and shareholders. Therefore, if you’re mainland company in UAE, you cannot afford to miss out conducting a statutory audit.
