An audit is the process of reviewing and verifying a company’s financial records to guarantee their correctness and fair portrayal. Your organisation must have external audits performed by AFD to guarantee that its procedures, systems, and documentation are still suitable and, most importantly, helpful to the organisation.
An external audit reviews your organization’s compliance and financial performance. Auditors often evaluate financial accounts, therefore it is critical that your company maintains correct records. An external auditor will often visit your premises throughout the auditing process, however remote audits are also available.
Planning an external audit process might be difficult, but here are some expert-recommended practical measures to help your preparations go successfully.
Understand the expected standards
External audits are reports that compare your organization’s performance to an external standard, so make sure you read and comprehend it thoroughly. A basic comprehension of the external auditors’ methodology is required. As a consequence, you may avoid taking unneeded steps by addressing issues outside of the audit. With a broad knowledge, you can better handle external audits.
Make sure you identify your subject matter experts (SMEs)
It is doubtful that anybody knows your internal procedures better than your subject matter experts. Determine which of your personnel is most equipped to help the external auditor in understanding and assessing your company operations and information security rules. It is critical to educate the SMEs about the need of external audits, as well as to demonstrate your awareness of the standards, so that the auditor can prioritise preparations based on their knowledge and competence.
Allocate enough resources to SMEs
You should be aware that the professionals and specialists you’ve picked already have a lot on their plates. The audit process demands a significant amount of time, energy, and effort from your SMEs. Ensure that your audit team has the resources needed to execute the assignment effectively.
Make Sure Your Internal Procedures are in Order
Assemble your SMEs and perform internal audits on the controls that will be tested in subsequent external audits. One of the primary goals of this evaluation is to detect any process gaps or poor compliance with the criteria against which you will be audited. As a result, check that you have implemented all of the controls specified by the standard and have taken remedial steps as needed.
Document your procedures
Checking that all internal processes are in place is a great place to start. The audit process will, however, include external auditors demanding supporting documentation. An auditor would most likely want copies of your policies, financial statements, accounting records, and “process artefacts” (proof that your procedures are working as you expected).
Prepare a list of paperwork demonstrating the current internal control structure based on the business processes identified in the previous stage. It also determines the correctness and completeness of your paperwork.
Steps of the External Audit Process
As part of your preparation, you should think about how external auditing works. Regardless of the distinct aspects of each audit, all audits follow a similar procedure:
1. Determine what you want to accomplish.
An audit target is an important component of the planning process since it will assist you establish what you need moving ahead.
2. Publicise the Audit.
Your whole organisation, including senior management and stakeholders, should be informed of the audit.
3. Schedule an Audit Entrance Meeting.
Give a short description of your audit goals, the procedure that will be followed, and the timetable for completion.
4. Fieldwork.
After you’ve developed an action plan, you may start the audit process. This approach will include control tests as well as an evaluation of your security system.
5. Evaluate and communicate the results.
Analyse and convey your audit results to the audit committee and personnel.
6. Meetings To Discuss Audit Exits
Follow up with everyone to ensure they are on the same page.
7. Summary of Audit Findings.
Keeping track of your outcomes is essential while planning for your next audit.
Learning these processes before beginning your external audit can save you time and money in the long run.
Conclusion: Hire a Top Audit Firm in Dubai.
This tutorial should help you better comprehend the external audit process. To guarantee compliance with UAE laws, regulations, and accounting standards, choose Dubai’s leading audit companies. Audit firms in Dubai can help you satisfy your compliance obligations.
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