The objective of the “Audit and Assurance” assignment is to provide an Independent audit opinion on annual financial statements of the company for each financial year covered by the term of the audit appointment.
Legal constituent for audit and assurance activity:
Mansoor Mulla Auditing of Accounts is DMCC, DAFZA, JAFZA approved auditors, with license number 738553 and approved by Ministry of Economy to carry out activities of Auditing.
According to the UAE Commercial Companies Law, Federal Law No. 2 of 2015, Article 27, Chapter 2, every company shall appoint auditors for auditing their books of accounts by a licensed auditor registered under Ministry of Economy in the UAE.
Businesses that are registered under the trade free zones and hold the trade license issued by the free zones, require their annual financial statements to be audited at the time of renewal of their trade licenses. As the financial year in the UAE, is the calendar year.
ADVANTAGES OF AUDITING
An audit provides independent verification that the financial statements are a true and fair representation of the entity’s current situation. This provides invaluable credibility and confidence to your organisation’s customers/clients, stakeholders, investors or lenders and even potential buyers. Also, it helps your organization to meet the statutory requirements and regulations to make sure that the organisation is 100% compliant with all of its current statutory obligations.
An audit can be an effective tool for identifying fraud and opportunities to commit fraud. Experienced auditors are skilled at pinpointing weaknesses in an organisation’s systems and controls and suggesting ways to strengthen these to prevent fraud occurring.
An audit confirms the accuracy of an organisation’s financial statements by analysing its financial transactions. It’s a detailed process and can result in certain types of income, expenditure, assets and liabilities being scrutinised. This critical examination, coupled with the auditor’s financial expertise, can then be used by business owners for better financial planning, budgeting and financial decision-making for the future.
HOW EXCELLENCE CAN HELP
As standard practice, we at Excellence follow the statutory requirements and International Financial Reporting Standards (IFRS Standards) and International Standards on Auditing (ISAs) and strive to provide the best audit experience. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion.Excellence Auditing is one of the leading auditing firms in Dubai, UAE, registered with DMCC as approved auditors.
MAGNITUDE OF WORK:
- We will carry audit of the financial statements of client (“the Company”) which comprise of the statement of comprehensive income, the statement of changes in equity, statement of cash flows, and a summary of significant accounting policies and other explanatory notes.
- Conducting independent audit of the financial transaction in line with International Standards on Auditing and International Financial Reporting Standards.
- Expressing an opinion on whether the financial statements aare prepared, in all material respects, with the applicable financial reporting standards and frameworks, whether the client has maintained proper books of accounts, and the accompanying financial statements give a true and fair view of the financial position of the entity based upon the material evidences.
- Auditor reserves the right to ask for documents according to the nature of assignment agreed.
DETAILS OF THE AREA COVERED UNDER FINANCIAL AUDIT:
- Income: Revenue, Profit on sale of non-current assets, Other income.
- Expenses: Cost of Revenue, Salary and Wages, Depreciation, Contractual expenditure, Loss on sale of non-current assets, Bad Debts, Other Expenses.
- Current Assets: Cash & Bank, Short term investments, Receivables and Prepayments, Inventory.
- Non-Current Assets: Property, Plant, Furniture and equipment.
- Current & Non-Current Liabilities: Creditors and accruals, Loan Borrowings, Provisions for employee entitlements.
- Other: Statement of changes in equity, disclosure of contingent liabilities, Statements of cash flow, Accounting policies and notes to the financial statements.