Stages of external Audit Process

1. Stages of external Audit Process  Auditing and Assurance  7th November 2019 An external audit occurs focuses on a company’s performance and compliance. All the records related to the audit examined in an external audit to make sure no errors exist in the ?nancial statement, which is important for investors and regulatory requirements. External auditors have no a?liation with a company being audited, which o?ers the business an unbiased audit. An external auditor in UAE passes through some key formalized phases when they are auditing ?nancial statements for clients. why an external audit is important? Preparing an audit plan The ?rst stage of an external audit involves the auditor looking over the information contained in the documents and plans out how the audit will be conducted. A workshop may be conducted to identify possible problems in future. An audit plan is then drafted. Auditors from top auditing ?rms in Dubai also need to identify the key areas of inquiry, concern and the speci?c information they wish to examine in order to analyze those areas. Find out more info: 5 Tips for Preparing for an External Audit Obtaining an Understanding of the Client Auditors in Dubai, UAE must attain a su?cient background of a company to assess the risk of material misstatement on ?nancial statements and to design the nature, timing, and extent of further audit procedures. The risk assessment procedures are used here which may include Chat with us!

2. inquiries of management and others within the entity, analytical procedures, observation and inspection, and other procedures. Obtain an understanding of internal control is an essential part of this stage, as it allows the auditor to identify areas that may be misstated and to design other procedures based on characteristics of the existing system. Assessing the risk of misstatement. Auditors in UAE use the information collected while obtaining their understanding of the client and its environment to identify classes of transactions account balances, and disclosures that might be materially misstated.  Risk assessment provides auditors evidence on potential risks of material misstatement.  The risks of material misstatement are composed of inherent and control risks for relevant assertions.  Inherent risk is the susceptibility of a relevant assertion to material misstatement, assuming that there are no related controls. read more : Di?erence Between Internal Audit and External Audit Performing tests of Controls Performing Tests of controls are to determine whether key controls are properly designed and operating e?ectively. Consider the control activity in which the accounting department accounts for the serial sequence of all shipping documents before preparing the related journal entries.  The importance of this control is to ensure that each shipment of merchandise is recorded in the accounting records. Completing the audit The audit is ?nalized and some procedures are re-performed to ensure validity. At this point, ?nal decisions will be made relating to the ?nancial statement disclosures. The auditor will hold meetings with senior management to discuss the ?ndings. Audit Report A standard unquali?ed audit report is issued when examination and the results thereof are satisfactory. This report is modi?ed as the audit examination deviates from normal. Find out more:  What is the Di?erence Between a Quali?ed and Unquali?ed Audit Report? Audit services in Dubai There are several certi?ed auditors in Dubai and the rest of UAE but for an e?ective audit, the system you need to hire seasoned intelligent auditors to track the ?nancial status of your company.

3. Farahat and Co have years of experience in providing auditing services in UAE. We have extensive knowledge that helps clients conduct an external audit. An audit ?rm in Dubai, Sharjah, Abu Dhabi UAE with certi?ed auditors in Dubai, we provide results- oriented services to our clients. If you are searching for expert auditing ?rms in UAE, you may contact us for further consultation. auditing ?nancial statements , external Audit phases , external audit process , external Audit stages Related Posts 7 Reasons to Conduct an External Audit in Dubai