What is Auditing? – Audit Planning and Standards

Audit services are of prime importance for the companies because they save them and help them in a lot of ways. Because of the audit services, the companies ensure their wellbeing and security.

What is auditing?

As Farahat and co describe auditing is basically the process of inspecting the financial records of the company for the sake of determining whether or not they are correct. Financial audits play a huge role in the company as it checks the accuracy of the records of the company. Also, due to conducting the financial audits, the companies get to know if it is complying with all the rules and regulations as per UAE law or not.

Who carried out the audit?

The job of audit s carried out through the audit firms in Dubai, UAE. The external auditors come from outside the organization and then release an independent opinion regarding the financial records of the company.

Sometimes, the companies hire internal auditors as well. The internal auditors act as the internal employees of the company to examine the accounts and the records in an appropriate manner.

Auditing Standards of the company

For maintaining the auditing standards in a company, the Public Company Accounting Oversight Board (PCAOB) issues the basic standards in order to make sure that all the companies comply with the rules and regulations as per the UAE law.

There have been 15 standards of auditing that have been approved by the SEC. these 15 are the permanent standards whereas there are a number of interim standards as well.

Internal auditor in Dubai institute helps the companies in providing the basic framework for the internal auditing. This is referred to as the International Professional Practices Framework (IPPF). Its basic purpose is to provide guidance for carrying out the internal audits. The guidance is really important because it helps the companies in complying with the rules and regulations in UAE. Some of the standards are not required by the law but they are recommended highly.

Audit Planning for the companies in the UAE

There is a huge impact on perfect audit planning on the health of the company. Due to the proper planning of the audit, the companies make the auditors in UAE focus on the most crucial areas of the company. This helps the company in improving its operations, internal controls and more.

Taking the decision regarding the overall strategy of the company and developing a proper plan for the audit comes under audit planning. Click here to find more useful tips and info.

The auditing standards determine the responsibility of the external auditor so that they may know what is expected from them and what are they supposed to do. Timing, extent, severity and everything should be planned beforehand. Describing each and everything before carrying out the audit helps the auditors in meeting the best audit standards.

For the sake of internal auditing, the internal auditor’s institute guides for the planning of an audit. The process of planning is initiated form the determination of the scope and objectives of the audit.

Internal auditors in UAE must understand the business, its operations and other unique features of the company in order to carry out their job in an effective manner.