What is Audit?
Simply, audit is about a company’s financial statements being examined and evaluated to ensure that the record of transactions that it shows are true and fair. It can be internally or externally, wherein internal and external auditors are the ones who perform the audit.
Internal audit can be done by the organization themselves by appointing someone from their side who is commonly known as internal auditor. On the other hand, external audit can be done by hiring a third-party person from audit firms in Dubai that offer audit services in Dubai who is commonly known as external auditor.
Audit is for the people who ask for that company’s financial statements, such as investors, banks, authorities, etc. Oftentimes, it is checked if the financial statements are based on the widely accepted accounting principles.
Many audit firms in DubaiUAE advise for audits to be documented. This is for the reason that there are evidences and information that are obtained by the auditor in order to support its conclusions and suggestions.
What is Documentation?
A document is something that has evidence or information that makes it an official record. It can be either in written, printed, or digital form.
Therefore, documentation is an act of recording the information that is needed to be put in writing in order to support something official and essential.
In the world of auditing, documentation is done to have supporting papers for the audit that has been conducted. It is prepared by the auditor with all the information needed to be taken note of.
Aside from information and evidences, the procedures of the audit and the auditor’s conclusions are also record in the audit documentation.
Why is Audit Documentation Important?
There are auditors from audit services in Duabi who consider this to be an essential part of audit quality. It is not the sole reason why an audit has quality, but having efficient documentation that contains the correct and needed information for support does help in it being a quality audit.
Audit documentation helps the auditors to show and prove to the people, usually the authorities, that a proper audit was conducted in a company. The other reasons why an audit documentation is essential are listed below:
- There is an assurance that the audit that was performed was in accordance with the auditing standards. This can assure not only the auditors themselves but also the company that was audited and the authorities or other people who request for the financial statements.
- This can help assist the auditors that will be hired in the future, in some cases that the previous won’t be available or the company decides to hire someone else. The audit documentation can aid the new auditors to understand the work that was performed in the last year.
- The data that has been recorded can help in ensuring and encouraging that the quality audit report is maintained.
Audit documentation is helpful to everyone involved in an audit of a company. It greatly gives advantages and not simply another task to be completed without any proper reason or benefit whatsoever.
There are a lot of things that one should know about audit and audit documentation, and this kind of information can be obtained by contacting audit firms in UAE. FAR – Farhat Office & Co. can provide you more details with regard to this.