Understanding and Managing External Audit and Assurance Checks
Businesses are always expected to keep pace with the evolving regulatory landscape and rapid technological advancements. Recent trends in the fields of law and technology indicate the significant changes the audit landscape has undergone over the years. Internal audits have become increasingly complex and any issues of non-compliance detected can be heavily penalised, affecting the overall profitability of the organisation. MBG Corporate Services improves stakeholder trust in your business and drives value in its daily operations.
With in-depth insights on the Middle East-specific risks, we offer tailored audit and assurance services across all business disciplines, accelerating your company’s business performance. We provide auditors with effective Data and Analytics (D&A) routines that facilitate a better understanding for stakeholders and ensure that our strategies align with your business values, such that they enable smarter decision-making capabilities.
Importance of having the Right Auditor
Auditor’s play an important role in corporate governance of any company. Transparency of finance function in a company is a fundamental requirement, to protect the interest of its shareholders and stakeholders. Non-compliance with corporate laws & accounting standards can easily lead to corporate frauds.
Major benefits of having the right Auditor
- Compliance with the international accounting standards, laws and regulation
- Detect & prevent frauds and unusual activities
- Suggest corrective measures & Implement quality control
- Enhance the credibility of the Company
- Enhances trust of shareholders & all stakeholders
FAQs for Audit & Assurance
An external audit is an independent examination of a company’s financial statements, ensuring accuracy, transparency, and compliance with regulations. It is essential for building trust among stakeholders and maintaining financial integrity.
The frequency of external audits varies based on factors such as company size, industry, and regulatory requirements. Generally, annual audits are common, but specific circumstances may necessitate interim audits.
External audits enhance financial transparency, mitigate risks, strengthen investor confidence, and facilitate compliance with regulatory standards. They also provide valuable insights for strategic decision-making.
External audits are conducted by independent third-party firms, while internal audits are performed by a company’s internal team. External audits focus on financial statements, while internal audits assess internal controls and operational processes.
External audits ensure that financial records align with tax laws and free zone regulations, offering a comprehensive understanding of compliance requirements and helping businesses navigate complex legal frameworks.
The duration varies based on the size and complexity of the business. Generally, smaller businesses may complete the process in a few weeks, while larger corporations might require more time.
Prepare by organizing financial records, reconciling accounts, and addressing any outstanding issues. Open communication with the audit team and providing necessary documentation in advance can significantly streamline the process.
The cost depends on factors like company size, complexity, and industry. Transparent discussions with us can help outline the scope of work and associated costs.
While not the primary focus, external audits may identify red flags or inconsistencies that could indicate fraud. However, a forensic audit may be necessary for a more in-depth investigation.
We have strict confidentiality policies and procedures in place. We adhere to these standards and have a track record of safeguarding client information.
Yes, external audit often provide valuable insights into improving internal controls and operational efficiency, contributing to overall business improvement.
We at MBG invest in continuous professional development for our teams, ensuring that auditors stay abreast of industry-specific regulations and changes in accounting standards.
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