Role of auditors in Dubai

The auditor is a professional who performs the audit of a company or a business. Companies in the past used to require accounting services from their respective audit firms such as preparation of journal ledgers, reconciliation of accounts and making financial statements. Small companies usually do not have accountants so they require services of an auditor from audit firms which are efficient and cost-effective.
In the last decade, we have seen auditor independence has increased remarkably. Now companies are hiring independent auditors to make the accounts details in time.

Job of an auditor

An independent auditor makes sure that the company's accounts and financial statements are fair and in compliance with the accounting principles. The audit gives investors and lenders confidence in financial accounts. The auditor makes such opinion with the help of GAAP and other requirements compliance during an audit.

For making an opinion, auditors collect necessary and appropriate facts and examine tests, confirm and compares until getting rational assurance. Auditor also makes sure all the statements and accounts heads are free from fraud and error.

Auditing procedures are as follows:

• Understanding organization and its operations by inquiring management, financial reports, fraud, and error.
• Performing analytical operations on account balances and different transactions.
• Understanding and evaluating internal system
• Testing different documentation
• Understanding inventory accounts
• Confirmation of accounts receivables and payables with vendors and suppliers

After the audit is completed, an auditor can advise on improving internal records and financial statements to strengthen company's performance.

What is not the Responsibility of an Auditor

You should understand the role of independent auditor. He is not responsible for financial statements data on which he performs the analysis, as it's the responsibility of the company.

The auditor is not part of the company will not:

• Approve and execute accounting transaction
• Make changes to the company’s documents
• Safekeeping clients assets even bank accounts
• Do internal controls
• Supervise employees activities
• Contact and inform BOD on company’s behalf
• Sign tax returns
• Approve and sign invoices from vendor
• Interfere with company's financial statements and system
• Interfere in hiring and termination of employees

The role of an auditor is very important and management should understand their do's and don’ts. the auditor in Dubai- Abdul Hussain & Associates gives the objective opinion about the financial statements in accordance with the accounting principles and guidelines.

However, management responsibilities in an audit are of utmost importance and should not forget such as:

1. To finalize and present financial accounts and statements in compliance with the guidelines to make sure they are accurate and free from error and fraud.
2. Providing all relevant documents associated with financial statements to the auditor.
3. Unrestricted entry and access of someone to company's documents as per the auditor opinion.

However, an auditor can assist management in the content and form of financial statements and even draft them as per management information. In that case, even, the responsibility of financial statements still lies with the management.