The United Arab Emirates is one of the most popular business destinations in the world. N number of businesses is getting registered in the country day by day. The companies registered in the UAE should get their accounts audited by registered auditors.
What is the main purpose of the audit report or audit of a company?
An audit report is a document that contains the auditor’s view or opinion on a company’s financial statement. It’s an evaluation of a company’s financial statement to check whether these comply with GAAP- Generally Accepted Accounting Principles and are free from misstatement. The Audit report may require by the Country’s law, Banks, Top management, Stakeholders, or creditors.
Why does A Bank ask for an Audit report of a Company?
There are several reasons why small businesses conduct a financial audit. One of the main reasons is to obtain or renew an existing loan from the lenders. Some lenders may ask for an audit report from a registered auditor to understand the business‘s financial position and accordingly, the lenders will approve the amount. A financial audit report may help businesses to get loans faster and easier with lower interest rates. Following are some of the top reasons that your business might need an audit report.
- Bank or lenders requirement
As we discussed above, the bank or the lenders will ask for an audit report for a business from a registered auditor for the purpose of knowing the companies eligibility like repayment capacity, Financial position, etc…
- Partnership or LLC
The investor has a high expectations of the business where they invested. It is required to be audited for these kinds of businesses to avoid any ambiguity among the management and Investors.
- Selling the Business
For companies looking to sell, The audit report will make things smoother. The information and opinions mentioned in the audit report will give an idea about the company’s financial position to its potential buyers.
- It’s a good practice.
Performing an audit at its time will send a strong message to its stakeholders, Creditors, Investors. Also, it will keep away the accounts department from fraudulent activities.
Now do you think that your companies need to be audited?
We are a team of professionals who has expertise in the field of Accounting and Auditing in the United Arab Emirates. We do Bank purpose audits, RERA Audit, Annual Audits. Contact us