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Accounting and financial audit: definition, role in the company

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The audit is a procedure which certifies the accounts of a company. It is ensured by an auditor (person in charge of this mission) who attests to the good financial health of the company as well as the regularity of its management. A good audit thus ensures certification to said company with different partners or organizations for example. Beyond this control mission, the auditor thanks to his analysis allows his client to foresee the future steps to be taken. The audit therefore allows analysis in many very different areas: accounting, finance, management, the product development process, etc.

The profession of auditor


The auditor is a self-employed person or an employee of a company specializing in auditing. The most important part of his work concerns the accounting and financial audit of a company:

·        Control the company's accounts,
·        Evaluate stocks,
·        auditors in Dubai
·        Check the good financial health of his client,
·        Be aware of new national and international legislation (etc.).

The auditor is generally an auditor or a chartered accountant, he can also be a graduate of bac + 5 (master 2) in a financial field. A good auditor is attentive and rigorous in his work because it is he who certifies the financial state and the conformity of the documents of the company calling on his services.

Internal Audit


The auditor (or audit team) is employed by the company. He controls, verifies, inspects and monitors the company's accounts with a critical view. The audit can be financial or accounting and financial.

External audit


The auditor is outside the company. As an auditor is external to a company, his mission is always an external audit. The points to be checked will not be fixed by the company being audited but by the sponsor. As in the internal audit, the auditor will prepare a report which he will then submit to the applicant

Third party audit


This form of audit is controlled by a neutral entity, generally an organization granting certain certifications to ensure that the company being audited respects the rules in force. The audit once carried out will highlight certain points which will determine or not the obtaining of an ISO standard for example.

Read also: Corporate Finance Services in UAE

The importance of performing an audit


Analyzing the functioning of your company on as many points as possible is very important and can be of little help. Indeed, the fact that an accountant attests to the veracity of the accounting entries allows the legal person to prove its good financial standing. In addition, in terms of efficiency, it can be useful to know whether management is effective or whether it must be changed in order to improve it.

The primary role of the auditor is to provide solutions to his client if he finds deficiencies so that the latter does not repeat the same errors. For this, the auditor will follow and help his client in the implementation of these new processes. So beyond the control mission, it is a real opportunity for certain companies which do not succeed in solving certain recurring problems in their internal functioning.




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