You will notice that the scope and objectives of the two types of audits also differ. Internal audits typically smaller, focused audits that (collectively over a year) will cover a broader range of scope. This allows the company’s Board and management to get more frequent/timely information that they may use to govern and improve the organization. To contrast, a business will typically have one big external financial audit each year. The objective of the external audit is to determine the accuracy of annual financial statements.
Proper book of accounts and accounting records help the owners better informed about the financial position of their businesses. It will help the owner during decision. Furthermore, it helps while filing Tax returns as well as during external audit too.
Internal audit can play a vital role in improving the performance of a company. Internal auditors assist companies in identifying key risk factors. This enables the company to anticipate potential future concerns as well as identifying current weaknesses. It also enables a company to identify processes and controls that are not working effectively and allows an opportunity to improve on these.
Information Technology Audits
It may vary with different free zones a little bit but in general below are some general documentations which requires during the process of liquidation:
Appointment of a registered liquidator
Various resolution prepared by the liquidator and sign by client
Official request to free zone for cancellation
Arrange clearances from Etisalat / DU, RTA, Custom
Bank account closure letter
Visa cancellation under that license
Arrange clearance from landlord
Final liquidation report from liquidator