A lot of business owners get nervous when their company is asked to go through an audit. But for accounting professionals, it is a necessary step to ensure that every aspect of the business is doing well. This is also to spot discrepancies in finances and other aspects of the business that the management is not aware of.
If your company is asked to be audited by a governing agency or certain organizations, here are the things that you need to do and prepare for the upcoming audit:
- Know what type of audit will be done
There are different kinds of audit that a company can go through – from the financial audit to operational audit. Before you start the preparation, you need to know what kind of audit will be done. This is for the company and business owners to know what kind of preparation will be done and which team will be the point person to lead the auditing from the company’s side.
- Asked for the list of documents needed
Apart from knowing what type of auditing will be done, the upper managements should also know what are the documents that will be essential and crucial for the upcoming audit. For a financial audit, auditors usually asked for the original copy of the financial statements, accounting books, bank statements, and other documents that would reveal the financial standing of the company. It would be best to know what papers and documents needed in order to facilitate the auditing. You can consult with your accounting team or directly ask audit firms in dmcc dubai for a list of requirements based on what type of auditing that will be done.
- Meet your finance team and the upper management
Aside from preparing the papers, the upper management should also prepare their team for the upcoming audit. For a tax and financial audit, it is usually the accounting team that is leading the charge. But for other types of auditing, the auditors might be needing the cooperation of other members or employees of the company. Be sure to inform the department heads about the scheduled audit so they can make arrangements accordingly.
- Scout a reputable firm to do the audit
Some governing agencies provide a list of auditors that companies can contact. But if you will be given a free reign about this matter, you can scout your own auditing firm to conduct the auditing and checking.
top accounting firms in dubai for more tips about company auditing.