The term auditing is not unfamiliar anymore. The process of audit is just like a medical check-up. The only difference is that the patient of examination here are the offices and organizations.
The process of in-depth and objective examination of accounts has changed significantly after the implementation of VAT laws in the UAE in January 2018. It has been the sole reason for companies opting for top audit firms in Dubai to carry out an in-depth examination of their accounts to ensure accurate financial statements as per the new taxation rules.
This article intends to throw light on how the auditing process has changed rapidly after the implementation of VAT laws in the UAE.
Ways in Which the Auditing Process Have Changed
Organizations used to get a decent idea about their current standing and performance by examining their finances on their own. Since they were sure and all aware of the tax regulations, so they were doing it with much ease.
However, the latest changes in the past have led businesses to hire top auditing firms in Dubai for external and internal auditing services as they have specialized in this area and can also do benchmarking for its clients
Here are the ways in which the auditing process has changed.
Notifications are the foremost step to initiate auditing. The notification letter generally specifies the purpose of auditing along with the complete schedule of the process. The notification stage of auditing hasn’t changed much even after the VAT laws implementation and follows the same set of sequences such as board meetings and the documentation auditor wants to examine.
The second step of auditing is the planning where the auditor requires some time to plan the audit. The process of planning has significantly developed after he inauguration of VAT laws . it is done before the final meeting with the organizational leadership in order to craft an appropriate strategy for the fieldwork that will follow.
It is the first active auditing stage after the notification and planning processes. It is usually drawn up so that the auditor’s presence isn’t too intimidating. This stage requires sample document checks in a more extensive manner to ensure retention practices are sound.
The fieldwork is extensive as per VAT laws so document and retention practices must be sound.
Want to Ace the External Auditing Process of Your Office?
The recent implementation of VAT laws in the gulf countries like the UAE has hit like a bombshell on many of the small and large scale organizations that were completely alien from the concept. VAT laws not only demands proper taxation calculation for your company but also requires you to be answerable to the external auditors.
Moreover, the process of external auditing is not a piece of cake for a lot of companies and have even gotten them into hot waters. Thus, you can certainly ace the process of auditing by opting for top audit firms in Dubai for an expert audit process. Their team of auditors will closely work with your finance department to make things much easier and less complicated for you.