FAQ

Frequently Asked Questions

What is the difference of External and Internal Audit?

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.

Who Performs the Audit?

  • Internal Audits – Internal Auditors, typically employees of the company
  • External Audits – External Auditors, typically members of a CA / CPA / ICAEW firm

Who is the Audit Reported to?

  • Internal Audits – Board of Directors, and members of management
  • External Audits – Shareholders and members outside of the company

What Does the Audit Cover?

  • Internal Audits – Internal Controls related to:
    • Governance
    • Risk Management
    • Process Improvement
  • External Audits – Financial Reports, and Internal Controls related to Financial Reporting

Why is the Audit Performed?

  • Internal Audits – To assess and improve the effectiveness of governance, risk management, and control over critical processes. To provide the board and management with information and assurance related to their duties.
  • External Audits – To validate, or provide reasonable assurance, the material accuracy of financial reports from the organization to its stakeholders.

When are Results Reported by the Audit?

  • Internal Audits – May report at any frequency designated by the Board
  • External Audits – Annually

What are the advantages of proper bookkeeping?

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.

What are the benefits of Internal Audit in the company?

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.

What are the types of Internal Audit services that management required?

Compliance Audits
Environmental Audits
Information Technology Audits
Operational Audits
Performance Audits

What are the required documents of cancellation for companies in UAE Free Zones?

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

Newspaper advertisement

Visa cancellation under that license

Arrange clearance from landlord

Final liquidation report from liquidator

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