How to prevent fraud Auditing?

VAT Registration in UAE

Internal auditing and fraud prevention have been hotly debated in recent years.
While some firms insist that internal auditors’ role as “fraud detectives” and direct participants in fraud prevention measures is their job, others contend that senior management should be the first line of defence.

Not only is fraud on the rise worldwide, but insiders are believed to carry out 70 per cent of all fraud. Fraud can sometimes be so destructive that it brings a business to its knees.

As criminals become ever more intelligent in their methods, a company’s anti-fraud control systems definitely need to receive more attention if they are to remain effective in preventing, detecting, and responding to fraud.

Who, however, bears the responsibility for this?

The role of internal audit in order to prevent and detect fraud.
“Internal audit should assess where fraud risk is prevalent inside the business and respond appropriately by examining the controls of that area, analysing the possibility for the occurrence of fraud, and how the organisation manages,” according to the IIA’s Fraud and Internal Audit position paper. Risk assessment and audit planning are used to reduce fraud risk. The internal audit does not have direct responsibility for preventing fraud within the company.

How can the knowledge of fraud help the auditors?

  • To evaluate the indicators of fraud and determine whether further action or investigation is necessary
  • In order to evaluate the effectiveness of controls to prevent or detect fraud.
  • In order to evaluate the indicators of fraud and determine whether further action or investigation is necessary
  • To evaluate the effectiveness of controls to prevent or detect fraud
VAT Registration in UAE

Internal audit professionals should not be expected to have the same degree of experience as specialist fraud detectives, according to the IIA, but they should use their data analysis skills to spot trends and patterns that indicate fraudulent conduct.
Despite these recommendations, the reality is that each company’s audit committee and board of directors have different perspectives on internal audit, and the precise role of internal audit and its involvement in fraud prevention is usually determined by a combination of external standards and an anti-fraud policy.

Finally, internal auditors must keep fraud risk in mind throughout all audit work, while also remaining alert to red flags and adhering to the organization’s policies and expectations regarding fraud mitigation.

Internal audit can provide and improve fraud assurance in what ways?

Fraud is without a doubt one of the most serious threats to governance that organisations face, regardless of industry, size, or jurisdiction.

Let’s go through a recent report by Kroll and the IIA that revealed that businesses that empower and invest in internal audits improve the overall effectiveness of their fraud risk management.

Internal audit is critical in not only reducing the financial and reputational impact of fraud but also in preventing business objectives from being jeopardised. As the primary source of assurance on all organisational risks, here are some specific ways internal audit can respond to the challenge of fraud risks:

Examine detection controls

Do you have confidence in your organization’s ability to detect fraud early on, if at all? If not, now is the time to revisit your annual plans to ensure that detective controls are just as stringent as preventative controls, so that if fraud occurs, it will most likely be detected by checks like reconciliations and management monitoring.

Detection can also include whistle-blowing agreements, in which a tip-off can stop fraud in its tracks. Internal audit also needs to collaborate with senior management to ensure that their whistle-blowing procedures do not discourage employees from coming forward during potentially critical business moments.

Provide fraud risk training

We previously discussed the IIA’s position on internal audit having sufficient knowledge to identify warning signs of fraud. Regular training, regardless of experience, can help audit professionals stay on top of fraud techniques and schemes as they become more sophisticated in the modern world.

However, it is worth noting that data monitoring and analytics skills should also be considered as part of your L&D program as they are becoming more effective in reducing losses and duration of fraud by detecting fraud schemes through trends and unusual patterns.

Invest in audit management services and solutions

A well-established team of risk-based audit management solutions can aid in the automation of data mining while also providing a real-time view of information that can be used to detect instances of fraud. It can also assist auditors in:

  • Assessing the effectiveness and application of controls, as well as the data’s reliability
  • Determining the adequacy of controls for asset protection
  • Evaluating compliance with policies, procedures, and legal obligations
  • Establishing a partnership and proactive communication with management
  • Promoting financial responsibility and accountability at all levels
  • Investigating financial improprieties, and
  • Identifying and making recommendations for mitigating fraud risks. In a nutshell

To make your business and your organization, you need to seriously invest in the best auditing solutions that can guide your operations step by step with no gaps that can lead astray. At HALSCA, we are committed to helping companies in the UAE achieve their business goals without stumbling blocks. Check our website for more information

UAE will introduce Corporate Tax (UAE CT) on business profits of corporations and other businesses.

VAT Registration in UAE

Effective for financial years beginning on or after 1 June 2023. A business that has a (calendar year) financial year starting on 1 January 2023 and ending on 31 December 2023 will become subject to UAE CT from 1 January 2024 (which is the beginning of the first financial year that starts on or after 1 June 2023).

Business income earned under a commercial license (including freelance license/permits, real estate management, construction, development, agency, and brokerage activities) will be within the scope of UAE CT

Apply to all businesses and commercial activities in UAE except for the extraction of natural resources which will remain subject to Emirate level taxation.

Applicable on the accounting net profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards.

Tax Rates

  • Nil tax for taxable profit up to AED 375,000
  • thereafter tax rate will be 9%.
  • This approach has been adopted to support small businesses and startups.
  • Example: CT liability of a company making taxable income of AED 400,000 will be AED 2,250 (9% on income above AED 375,000 = 9% of AED 25,000)
  • There will be a different tax rate for large multinationals (that have consolidated global revenues above EUR 750 million).
VAT Registration in UAE

Free zone businesses will be within the scope of UAE CT and required to register and file a CT return but will continue to benefit from CT holidays / 0% taxation if they comply with all regulatory requirements and do not conduct business in mainland UAE.

UAE withholding tax (tax collected at source by the payer on behalf of the recipient of the income) will not be applicable on domestic and cross-border payments of any nature under the UAE CT regime.

UAE businesses will need to comply with transfer pricing rules and documentation requirements in line with OECD Transfer Pricing Guidelines

Individuals could be subject to UAE CT on taxable income from trade/ business in UAE.

No UAE CT will apply to:

  • Employment income, income from real estate, income from savings, investment returns and other income earned by individuals in their personal capacity that is not attributable to a UAE trade or business.
  • Dividends, capital gains, and other investment returns earned by foreign investors.

Exemption from UAE CT will be available for:

  • Capital gains and dividends earned from qualifying shareholdings.
  • Qualifying intra-group transactions and restructurings.

Other features

  • Losses incurred (as from the UAE CT effective date) can be carry forward and used against to offset taxable income in subsequent financial periods.
  • UAE CT will have to be filed electronically once for each financial period.
  • No provisional or advance corporate tax filings will be required
  • Foreign CT paid on UAE taxable income will be allowed as a tax credit against the UAE CT liability
  • UAE group companies can form a tax group and file a single tax return for the entire group, and transfer tax losses to other members of the group.
  • The Federal Tax Authority will be responsible for the administration, collection, and enforcement of UAE CT
  • Ministry of Finance will remain the “competent authority” for the purpose of agreements and exchange of information for tax purposes.

You may please go through the FAQs at https://www.mof.gov.ae/en/resourcesAndBudget/Pages/FAQ.aspx Further information is expected to be released by mid of 2022. We will keep you updated with the latest information on UAE CT time to time.

How to Create a Strong Internal Audit Structure for Your Business?

Internal audit in Dubai

Regular internal audits can help the organization make better decisions for the future and leverage success. That is why a robust internal audit structure is essential to ensure smooth functioning within the organization.

Theinternal audit in Dubairelies on a range of factors that governs the functioning of different departments, process, payroll system, the performance of the staff, etc. With internal audits, you can put the correct measures in place and ensure the company is working towards the intended goals.

Organizations either employ a team of auditors to carry out internal audits or enlist the help of professional companies for the audits. In both cases, the auditors identify the weak areas and suggest ways to strengthen them. They also identify and mitigate risks to ensure the company is using all its resources optimally. Building a robust internal audit structure will allow you to make most of the audits and remain competitive in the market. But the only question is how you strengthen the audit structure for your business? Some steps and measures allow you to do the same, and we have listed the most effective ones in this article, have a look!

Build a Strong and Clear Reporting Structure

Every internal audit team must follow a clear and defined reporting structure. Thus, you should ensure no conflict affects the communication and performance of the audit team. If you are hiring a company for an internal audit in Dubai, you should develop channels of communication that have no interruptions. Since your in-house team will be working closely with the audit team, it is crucial to ensure the departments work in sync and deliver the reports on time. Additionally, ensure the audit reports are concise and used to make significant business decisions.

Better Engagement in the Strategic Planning Process

The audit team will be responsible for identifying risks and managing them, strengthening the internal control system along operational activities. In addition to all these critical tasks, the team will create a strategic planning process. That means along with internal audits in Dubai,you also use their expertise in improving the governance of all the business activities. That way you can leverage the professional experience in your scope of work and plan your business journey accordingly. Since the team has experience and expertise, they will take all the essential factors into account and ensure all the plans are strategic and in line with your organizational goals.

Adding Value to Business Operations

The audit team must align its process with the organizational goals and objectives. Doing this allows you to put all your efforts in the right direction. In addition to finding the loopholes and weak processes, an internal audit team will also help you identify missing opportunities based on the goals. Hence, they will be able to contribute to giving the right directions and improving the functionality of the business. Adding value to business operations is also a significant aspect of internal audits. That is why when you decide to get an internal audit in Dubai, look for a team that possesses the relevant expertise and experience to support your business in expansion.

Internal audit Dubai

Commitment from Your Internal Audit Team

The in-house audit team often makes mistakes in the process and operations. It is one of the significant reasons why companies prefer to collaborate with a trusted partner to get aninternal audit in Dubai. However, since internal audits help you improve your business operations, you must look for a team that will spend time and effort in the process.

Thus, you should enlist the help of a firm that has the experience and is willing to put resources into your audit. Commitment is vital to building a robust internal auditstructure for your company. The team must also highlight the positive aspects of the business process to boost the team’s confidence and keep them motivated.

Adopting Data Analytics

Data analytics during an internal audit in Dubaican bring a massive difference to the effectiveness of internal audits. With data analytics, auditors extract useful information, which helps identify and analyze patterns. That will ease detecting inconsistencies easier and allow them to generate better insights from the collected data. Thus, data analytics is the key to improving accuracy during internal audits. It also allows them to generate and share the audit reports faster.

Final Words

Internal audit is the best way to reduce the chances of failure and increase the efficiency of business operations. Since the outcome is dependent on the expertise of the audit team, it is essential to enlist the help of a trusted audit firm. HALSCA is one of the top firms that offer services like VAT registrations and internal audits in Dubai. Look at their website to browse their services or contact their support team at sholy@halsca.com.

VAT Registration in UAE: Documents & Information Required

VAT Registration in UAE

With the changes in the system, the United Arab Emirates has now implemented the Value Added Tax (VAT). That has made it crucial for every company to get VAT Registration so they can pay accurate taxes. You pay VAT at a rate of 5% on goods and services. However, there are some exceptions, such as healthcare, simple food items, and education. You can have a look at the guidelines and governing implications on VAT via the official website. That allows you to understand the process of registration and also assists you in calculating the tax amount.

However, if you need some help with the registration process, contacting a professional company will be the best decision. A trusted agency will make the process of VAT Registration in the UAE much easier. Also, with their help, you can understand the updated guidelines and ensure you pay the correct amount depending on all the latest protocols. It will ensure there are no mistakes during the tax calculation and prevent hefty fines. If you want to know about the documents and VAT registration process, we have listed all the essential information in this article.

Who Should Register for VAT?

The new amendments mandate the companies to register for VAT if they have an annual turnover of more than AED 375000/-. Thus, all individuals and companies should register for VAT if their annual turnover is more than the set amount.

This threshold is the same for all individuals and companies. The companies operating before the implementation of this law must go through with the VAT Registration. New companies, on the other hand, must take care of the registration when establishing the company.

The VAT is an indirect tax added to goods and services that a company provides to its customers. This tax applies to both companies and individuals. Once the company or individual has registered, they need to submit a return to the FTA (Federal Tax Authority). It is submitted periodically on a monthly or quarterly basis. The company or individual pays all the tax collected. The VAT implemented in UAE is similar to VAT in Europe, you can acquaint yourself with the process from other countries too.

The final consumer pays the VAT. You can any amount claim back any amount that you pay. However, not all services are part of the VAT system. Some services such as transport, finance commissions, school fees, and interests are exempt. In addition to all these exemptions, Free zone companies are not always an exception. Some companies that have a turnover above the threshold are mandated to go through VAT Registration. Companies that are manufacturing supplies for foreign companies can apply for an exemption.

Thus, you will need to read up on all the guidelines before you register for VAT. The information makes the registration process simple and allows you to expand your business as well. Before you go through the VAT registration process, you will need a ton of documents. All of these documents are fundamental for the registration process. Thus, you should keep soft copies of all these documents. When you are filling out the application, you will be required to upload copies of all documents for verification. We have listed out all the essential documents below, have a look to be prepared.

VAT Registration UAE

Documents Required For VAT Registration

You will require soft copies of all these documents while filling the application. All of these documents are essential during the registration process.

  • Documents help identify the authorized signature like a copy of passport, Emirates ID.
  • Company’s or individual’s turnover for the last 12 months in AED.
  • A copy of the trade license of the company.
  • Description of all business activities.
  • Details of the bank account.
  • A range of supporting documents for 12-months sales.
  • If applicable, you will also need all supporting documents for customs registration in each Emirate.
  • Expected turnover of the company in next 30 days.
  • You will need to share information if you are expecting to deal with GCC customers or suppliers.
  • All the other official documents that authorize the entity to conduct activities within the UAE. These documents include Articles of Association, power attorney, certificate of incorporation, etc.
  • The estimated value of both exports and imports for one year to every GCC country.

Companies can also register voluntarily if they want to go through the VAT registration. Companies that have a turnover of more than 187,000 AED can register voluntarily for VAT.

Final Words

VAT registration requires a lot of work and effort. You will need to be aware of all the guidelines to ensure you follow the process correctly. If you think you need some help with the process, you should enlist the help of a professional company. HALSCA is a professional accounting firm that can help you with VAT registration in UAE. They employ a range of professional accountants who can make the process easier for you. Browse their website to learn more about their services, or contact their exceptional team at +971 55 651 9937.

VAT Impact on Change in the Permitted Use of a Building, UAE

The real estate sector is one of the most prominent sectors in the UAE. The residential type of supplies is significant in this industry. However, the real estate industry also involves other mixed nature of lease and sale agreements which can be complex for VAT treatments. These supplies involve building sales or leases, and it is one of the most frequent types of transactions in the market. However, one significant issue is determining appropriate VAT treatments. Companies must have the correct VAT registration in UAE and must also be aware of its implications. If you are changing the use of the building, there will be VAT implications, and you must know about the precise treatments to manage the issue. In this article, we will look at the impact of VAT calculations for the changes in the permitted use of buildings and how organizations can manage it.  

What Factors Are Considered on Determining VAT When Selling A Building?

When determining the VAT treatment on a building for sale, the use of the building on the date of supply plays a pivotal role. The building is considered an invisible good this is why the current usage is taken into account at the moment of sale. The standard rate of tax will depend on the nature of the building. Thus, if the building is considered commercial on the date of supply, the tax will be charged per commercial rate. However, the changes will be different if the building is residential. If you are unsure about the VAT rate, you should enlist the help of a professional company that offers VAT services in the UAE. They will help you determine the tax charges and allow you to be prepared for the expense in advance.

Step To Identify A Residential Building

Residential buildings are used or meant to be used by a person as their place of residence. Thus, if someone has bought a building for residential purposes, it is considered a residential property. However, the VAT regulations exclude hotels, motels, bed and breakfasts, and hotel apartments from this criteria. Even though these places are for residential purpose, it is not necessarily used by one person. These places are used by guests, and this is why the VAT treatment of such buildings is different. Thus, if you need to determine the VAT treatment and tax charges for your property, you will need a professional company that offers its VAT services in UAE. They can assist you with the registration process along with the VAT treatment as well.

Don’t Forget About These Steps To Determine The Date Of Supply For The Sale Of A Building

The date of the sale of a building is integral during the sale process. It is the earliest date among the following. Thus, organizations must choose the earliest time to determine the date of the supply of the building.

  • The date on which the purchases received the possession of the building.
  • The date when the tax invoice is issued for the sale.
  • Date when the ownership is transferred (in most cases, it is the registration date)
  • The date when the seller receives the payment for the sale.

Whichever comes first is considered as the date of the supply for the sale of a building.

The Possible VAT Treatments On Supply Of A Building in UAE

A trusted company can help you with the process of VAT registration in the UAE, and also allow you to determine the accurate VAT treatment as well. Since the VAT treatment depends on several factors, it is better to enlist the help of a professional. A sale or the lease can be a standard rate, a zero rate, or maybe fully exempt depending on the nature of its use and date of supply. Thus, it is integral to consider both of these factors to understand the impact of VAT. The residential buildings are zero-rated on their first supply within three years of construction. Afterward, the lease or sale of the building will be exempted from VAT. In the case of a commercial property, the building will be taxable at a standard rate of 5% on both lease and sale.

Final Words

VAT is mandatory on all building supplies. Thus, determining the correct impact allows you to calculate the correct tax charges and file taxes on time. Several trusted accounting companies offer their services that will assist you with VAT treatment and calculation. HALSCA is among the top companies that provide trusted VAT services in the UAE. Take a look at their services, or get in touch with their expert team by contacting them at sholy@halsca.com.

Tips To Avoid Internal Audit Mistakes In Dubai, UAE

Accounting firm in Dubai

Finances are the fuel of every business, and even the most minute errors can cause massive losses. That is where internal audits come to the rescue. By auditing your books in the house, you can resolve errors and strengthen the internal controls of the company as well. However, an internal audit is only beneficial when the process completes accurately. If you do not have the time and resources to perform this process, you should enlist the help of a partner who can help you with an internal audit in Dubai.

Several firms offer their services to business owners and help them get their accounts in shape before the external audit. However, if you have decided to conduct the internal audit yourself, you should ensure the highest accuracy and precision. To help you with the same, we have put together this list of tips that will allow you to avoid frequently made mistakes during an internal audit. By avoiding these errors, you will be able to audit your books better and get a clear and precise understanding of your firm’s finances.

Look At The Bigger Picture

It is an integral factor for an impeccable internal audit. When professional companies offer their internal audit services, they keep the organizational goals in mind. By keeping the bigger picture in mind, you will be able to steer clear of the wrong decision and ensure to take actions that align with your organizational goals. Looking beyond the surface will help to increase your productivity and measure your organization’s compliance with the standards. Thus, you will be able to check and review the performance of your employees and firms and determine if you are on the right track.

Keep Your Audit Report Short And Concise

Every company that offers an internal audit service in Dubai can tell you how massive audit reports can affect the firm. Since this report goes to the upper management for reviewing, the shorter it is, the better it will be for the superiors to assess it and express their views. The report primarily helps to highlight the weakness of the firm and suggest improvements. Thus, you should stick to this formula and refrain from adding excess information to it. A concise and clear report will introduce action plans that you can implement to strengthen the weaknesses and improve the overall functioning of the firm.

Don’t Forget About Planning

Internal audit is planning heavy. Even though planning is a crucial aspect of every critical decision, it is even more internal when auditing the firm. Thus, while conducting an internal audit in Dubai, you should plan the requirements of all essential factors like machines, workers, equipment, and funds. You should make these plans after a careful review of the production requirements. With accurate planning, you will allocate an adequate amount of funds for every factor and ensure maximum benefits from a smooth production chain. Also, with resource planning, you will be able to calculate the net worth of your inventories, assets, and other materials, allowing you a clear picture of your firm’s resources.

Audit firms in Dubai

Value Addition

The process of audit and micromanagement go hand-in-hand. You cannot talk about one without referring to the other. Thus, when working on an internal audit in Dubai, you should also invest time in developing an ideal micromanagement process. The final goal of this addition is to add value to the audit. Thus, opt for a strategy that allows you to streamline the audit process without dwelling on the small details. A firm has many elements, and auditing even the tiniest department can lead to time wastage. Thus, you should develop an efficient workflow that enables you to take all the essential factors into account without being time-consuming.

Prepare For Uncertainties

It is not just true for internal audit services but for every department and working process. You may experience some unexpected hiccups during your audit process. Hence, make sure you have a plan to help you deal with the surprise element. Having suitable instruments in place will help you minimize the waste of time and resources and ensure your audit process remains efficient as ever.

Final Words

Internal audits are integral for all firms. Accurate audits add a considerable amount of value and provide a better understanding of the firm. Getting your firm audited from trusted partners will allow you many insights beneficial for your firm. HALSCA is one of the leading firms that offer the best internal audit service in Dubai. Visit their website for their exceptional services, or get in touch with their expert team at +971 55 651 9937.

How to Manage Auditors When They Come For an Audit?

Accounting firm in Dubai

Is your firm going through an external audit for the first time? If yes, then the pressure must get overwhelming, since auditors will thoroughly check and verify all the books and information. However, preparing for the audit beforehand can help reduce your anxiety, and allow you to manage the auditors better. A reliable accounting firm in Dubai can help you prepare for the external audit and ensure you pass with flying colors. The accounting and auditing needs of an organization are unique, and they need a professional who can understand them and offer services accordingly.

If you are notified about an external audit, you should contact the best firm to internally audit your accounts and books. An audit is used to determine whether or not the accounts are accurate and complete. Thus, instead of panicking before an external audit, you should take time to get all the books audited internally and strategize about how you will manage the external auditors. If your firm’s audit is due in a few days, then look at these tips to manage the auditors and prepare your firm for an external audit.

Try to Understand The Standard

The audit report is used to determine the performance, process, and revenue of the firm. If you conduct an internal audit of the firm, you will be able to compare your books and define the correct standard of your firm. Having an internal audit is critical to understand the approach the external auditor will take. If you employ a trusted accounting and auditing firm to audit your books, you will be able to share the knowledge with external auditors and reduce the auditing time. With this knowledge, you can avoid topics that are outside the scope of an audit.

Identify Your Internal Process and Prepare Subject Matter Experts

The employees understand the internal process of the organizations better than anyone else. You can use their knowledge to ensure that the auditing process goes smoothly. You can determine which employees or team members have the best knowledge to assist the external auditors. They can make sure that the external auditors have access to someone who can guide them throughout the process, making it quicker and seamless. If you are hiring audit firms in Dubai, make sure you share the importance of the external audit beforehand to ensure they use their best skills and prioritize the assignment accordingly.

Offer Resources to Auditors

Every auditor has their daily operations to take care of, and external auditors are no exception. Since the auditors will be managing a lot of work, you should allocate as many resources as you can to help them. This will not only make the process faster but allow them to proceed with the audit seamlessly. You can allot SMEs and other organizational resources at their disposal.

Audit firms in Dubai

Assess Your Internal Procedures

Before an external audit, you should gather your employees and the firm you have hired to audit your internal controls and process. This will allow you to identify the gaps where the processes are weak or do not exist. Doing this will allow you to manage your organization’s process prior to external audits. In simple words, this will help you to review and ensure all controls that are mandated by the government are implemented, and your firm is taking corrective actions wherever essential. By assessing your internal process, you can reduce the work of an external auditor and manage them better.

Gather All the Relevant Documents at One Place

This is important, if you have an upcoming audit by an external audit, you should ensure all your documents are in one palace. This is because the auditor will be reviewing all relevant documents and books. If you have them in one place, you will reduce their workload and ensure the process is completed quickly and efficiently. You can have the physical documents in place, or get all the necessary documents in one system or drive which will be easily accessible. Start by making a list of all relevant documents and ask your team to upload all files in a single drive.

Final Words

Managing external auditorscan be a bit overwhelming. These are the professionals who will determine your organization. Thus, you should make the process easier for them. A reliable accounting firm is all you need to prepare you for an external audit. HALSCA is one of the leading accounting firms in Dubai. They can assist you with everything allowing the process to get smoother. You can visit their website to review their work or get in touch with their experts at +971 55 651 9937.

A Look at the Key Role & Responsibilities of Internal Auditors

Internal audits

Every organization requires a robust internal audit team to assess its accounts and finances. If you have decided to outsource your operations to a firm that offersinternal audits in Dubai, you must be aware of the auditor’s responsibilities. Thus, you should understand the role of an auditor before delegating your work. An internal auditor holds a certain authority in the firm and has access to all sensitive documents. Thus, it is essential to pick the right company to assist you. An internal auditor performs some daily functions, but they have a set of crucial duties. Let’s look at some of the most notable responsibilities an internal auditor is expected to perform.  

Primary Responsibilities of An Auditor

An auditor is responsible to conduct regular internal audits. These audits offer insights to the business owner and allow them to survive in the competitive market. Thus, your shortlisted company must be able to conduct regular Internal audits in Dubaiand help the company grow and expand. The duties that are included with this responsibility are:

  • Reviewing the company’s compliance with the ever-changing government policies.
  • Monitoring and analyzing the risk and controls of the organization and offering corrective solutions to strengthen the weak areas.
  • Providing insightful recommendations to business owners on the best ways to expand their operations and maximize their profits.

Major Roles of Internal Auditors

Apart from all the responsibilities discussed above, an internal auditor performs other roles as well. They verify the books and assets of the company to provide an updated valuation of the organization. They also help the companies pay optimum taxes and draft documents and procedures to ensure maximum productivity. Some of the most notable roles an auditor performs are:

Measuring Operations and Policies to Determine Best Practices

The best method to grow a business is constant tracking, and qualified auditors can do so efficiently. They can conduct regular internal audits in Dubai, and measure the success rate. This helps to give a clear insight into the actual working of the organization. Thus this information will ensure that the business owners implement the best policies and achieve quantifiable results. Regular review will also help determine the strong and weak areas, thereby allowing allocation of the firm’s resources optimally.

Internal audits in Dubai

Evaluating Risk and Offering Best Course of Action

The purpose of every internal audit in Dubaiis to assess the risk associated with every decision. With a professional internal auditor, you tend to get a better risk assessment, which will help you steer clear of the risky decision and losses that accompany it. Thus it is important to conduct a risk assessment before making any financial decision and identify the unforeseen dangers well in advance. By assessing risk, the company will also be able to create a backup plan in case the decision goes wrong.

Better Control

Since your auditor will give you a thorough review of your company’s control, you will have the option to verify and strengthen them. For instance, if your supply chain is not optimized, your auditor will point it out, and you can fix it to limit any further loss. This review will help you strengthen control over the entire organization and achieve your collective goal quicker.

Verifying Compliance with The Regulations

Every industry has certain laws and regulations imposed by the government. The companies are expected to adhere to them, or else they are penalized. If you are in an industry where the regulations are constantly updated, then you can definitely benefit from a professional Internal audit in Dubai. The qualified auditors will remain updated on the new changes and ensure your company is always compliant. Having a qualified auditor will not only prevent any unnecessary fines, but you can also get some deductions and tax reductions as and if applicable.

Offer Insights

This is the most significant benefit of every Internal audit in Dubai. Every review and audit can be beneficial for business owners. Since the auditor will be reviewing your documents and books thoroughly, they will be able to offer insights on enhancing your process or channels. These insights will be valuable during the planning and allow you to develop a strategy that will maximize your revenue.

Final Words

Internal audits can be an effective tool to grow your business. The Internal audit in Dubaiis all the more effective if they are performed by a professional auditor. HALSCA is one of the leading accounting and auditing firms in Dubai. They can assist you with everything from internal audits to managing your account. Have a look at their website to review their work, or get in touch with their experts at sholy@halsca.com.

Importance Of Availing Virtual CFO Services For Your Business?

CFO services Dubai

Owning a small to medium enterprise means making sacrifices to keep the business afloat. The daily business tasks can overwhelm the business owner, and not employing specialists may be the reason holding your business back. Accounting is a significant unit of every business, and enlisting the help of a virtual CFO is one of the best ways to ensure your finances are well-managed.

Having a qualified and dedicated professional to oversee your finances will allow you to adhere to a budget, and meet your firm’s financial goals. A CFO is an executive who handles the financial matters of the firm. In this uncertain economy, hiring a virtual CFOis much more beneficial than employing a full-time CFO for your firm. A remote CFO can perform all the necessary tasks at a fraction of the cost. Some of the most significant benefits of hiring virtual CFOs are:

Reduced Cost

One of the primary advantages of hiring virtual CFOsis the reduced cost. You will not be mandated to the basic salaries and bonuses to your outsourced CFO. You will only pay your virtual employee on a project or hourly basis. Thus, you will only have to pay for the services you use. This will allow you to save the overhead costs and indirect expenses and still get a professional to manage your firm’s finances.

Increased Productivity

Hiring remote employees can increase their productivity. Since there are fewer distractions, the CFO can eliminate long commutes and cut back on time wastage, allowing them to focus on the task at hand. Since the virtual CFOworks on several projects, they deliver the allocated tasks within the given deadline. With a remote employee, you get better productivity and experienced help compared to an in-house employee.

Help in Strategic Financial Planning

All virtual CFOs are trained in several accounting fields and gain years of experience working with several clients. This allows them to gain several analytical skills that are required to develop strategic plans for growing a business. They can assess your unique business needs and help you build a financial strategy accordingly. In addition to developing a perfect business plan, they can also help recommend ways to implement these plans to get the best results.

Better Accuracy in Financial Reports

An In-house accountant can prepare internal reports, but getting help from a virtual CFO can eliminate the risk of any error and discrepancies within the reports and accounting books. They have a deeper understanding of accounts, and they can review the internal report to ensure they are accurate before the audit or submission. Experienced CFOs will give you exact information about your company’s finances and help you create a better strategy to manage them as well.

virtual CFO

Increased Cash Flow

The primary goal of every business is to increase their cash flow, and this is why they engage with virtual CFOsand enlist their services. With the help of a professional CFO, you can identify the weak areas of your business and gain insight into strengthening them. Since they have years of experience, they can recommend changes to improve your company’s financial health and bring you closer to achieving your organizational goals.

Experienced Assistance

When you are looking to employ professional CFOs, you have a chance to outsource your work to a qualified company that employs a pool of experienced CFOs. The proper education and training of a virtual CFO make them a perfect employee to manage your firm’s accounts. They can use their experience to streamline your business and help tackle the industry competition.

Complete Independence

Another positive aspect of bringing an external consultant is their unique vision and perspective. A virtual CFO will not be involved in your business, and they can offer their unbiased opinion. Their unique perspective will be a helpful tool in identifying potential issues and mitigate risks. Their viewpoint will help your in-house team manage the internal reports and the company’s finances, efficiently.

Final Words

A virtual CFO is a tool you might need to take your business to the next level. They can add value to your firm and bring an ample amount of experience and perspective to streamline your accounts and operations. Finding the best virtual CFOs is integral to ensure maximum benefits. HALSCA offers the best CFO services in Dubai. You can visit their website to have a look at their group of professional accountants or contact them at sholy@halsca.com for more information.

How Does Auditing Help in the Efficiency of the Business?

Best audit firm in Dubai

Internal and external audits can be time-consuming for most companies. Preparing the relevant information and cross-checking every entry can be a lot of work for auditors. The goal of an audit is to improve business performance by ensuring accurate accounting entries. Organizations enlist the help of an audit firm to conduct internal audits. These audits are focused on analyzing business practices and accounting books, and allow the organizations to streamline their expenses and improve performance. Proper auditing has become an integral tool for organizations allowing them to improve accounting processes and govern policies.

Internal audits are mainly conducted by businesses by organizations to review their activities, and external audit is mandated by the law. In both cases, independent auditors assess the company’s books and determine their accuracy. Auditors are trained professionals who have a strong grasp of the accounting process and laws related to it. In addition to reviewing the company’s books for discrepancies, they can also suggest methods to streamline the business process. This is one of the main reasons for conducting audits. Audits can assist a business in several ways, and some of them include:

Prevention of Fraud

A proper auditing process can prevent frauds before they can affect the organization. The process of the audit includes verifying all incomes and expenses, and this process can shed light on any red flags that can affect the company’s funds. The best audit firm in Dubaican discover fictitious transfers or if the organization’s resources are being misused. Thus giving them an opportunity to tighten the internal control and identify frauds on time.

Skilled auditors can also scoop out any conflict of interest and offer advice to limit the issue. Auditing can provide better financial awareness to leverage growth. An audit can also provide a clear understanding of revenue and expenditure allowing the firm to make the most of its funds and increase the organization’s efficiency. To get the best results from an internal audit, you should choose a professional audit firm that has the relevant experience and expertise.

Protect The Company’s Reputation

audit firm

Auditing serves as a line of defense, and can ultimately help save the company’s reputation. Regular auditing is proof that companies take their shareholder’s interests seriously and take every measure to keep their investments safe. Also, the signature of an auditor is the highest form of attestation a company can receive. Auditing ensures that the company is managing the funds and expenses optimally and drives the shareholder’s trust.

It also keeps the board satisfied, and ensures the firm is in compliance with the latest laws and regulations. An organization that frequently gets its books audited by the best audit firm in Dubai is more aware of its financial statements and cash flow and can take measures to streamline them. Such an organization will be more efficient and will be a choice for future investors.

Assist in Improving Businesses’ Internal Controls

A company’s internal control and governance policies determine its operations. Thus, weak internal control can be a significant roadblock to success. Regular auditing can help an organization strengthen its internal controls and build better governance policies for employees. These policies direct the proper flow of operations and are a key to developing good strategies. Stronger internal controls allow the management to prevent oversight and uphold the company’s vision and values.

Auditing Professional auditorsreview the control of a firm and offer insights to strengthen them. They ensure that these controls are working and notify the board of any loophole or flaw in these policies. Their insights help the top management alter the firm’s policies and ensure all the teams are on the same page. This allows the middle management and rest of the staff to work for the organization’s benefit and achieve goals more efficiently.

Final Words

Auditing is an integral tool to improve the efficiency and performance of a business. A professional audit firm can assist an organization in verifying its internal controls and accounting processes. However, choosing an experienced firm is a significant step to make the most of regular audits. HALSCA is one of the best audit firms in Dubai, they are a group of experienced CAs and accountants who can help you streamline your business process. Get in touch with them at +971 55 651 9937 today to get your business on top!