Significance of Annual External Audit

When you have your financials audited, stakeholders find positive value in your organization. An external audit determines whether an organization is showcasing its true and fair value – thereby enhancing the credibility of the business by attesting to its financial health. Accounting companies in the UAE consider annual external audits to be very crucial.

Read on to know more about the significance of annual external audits:

  • External Audits are unbiased, thereby giving a clear picture to the shareholders. Banks and other funding institutions place a lot of emphasis on independent audits, so if an organization is looking for loans – it’s best if they have independent financial audits.
  • There might be some issues missed out in Internal Audits, and External Audits then come to your rescue. External Audits help you find the missing gaps, and in case a business is seeking to grow external investment or sell the business – external audits come in handy!
  • External Audits provide enhanced integrity on the financial statements, and ensure better financial risk management, along with enhanced internal controls, solvency, etc.
  • Any discrepancy in financial data can lead to legal penalties, legal issues, or dissolutions – and to avoid this – being compliant is very important. While the owners might not always have the time to go through the minor details, an external audit helps identify the lack of financial compliance.
  • An external audit provides credibility like no other. In the business marketplace, an organization has far better standing when the financial statements are verified. When you look to raise finance or sell the business – audited accounts mean that your business is free of material error or malpractices.
  • Last but not least – an external audit gives you confidence in your business and ensures you’re well aware of the standing of your organization at all times.

External Audits are important, as they act like periodic reviews to ensure your business is in good standing. If you’re looking for external audit services, reach out to TRC Pamco, one of the best audit firms in Dubai.