How to prepare for an audit?

Comments · 78 Views

The Auditing firm has the task of verifying: the regular keeping of the social accounts and the correct recording of management facts in the accounting record. Get more information: 97142287774

The audit is a resource that must be present in the reality of any company, as it is that which offers managers the guarantee that the processes are being correctly carried out, that is, performed in an optimized manner and in compliance with the legislation.

 Thus, you must always be prepared for the audit. See how:

 Work with an annual plan

 Start with an annual activity plan. In it, indicate the areas that should go through the process and identify the reasons.

 The company's steering group will be responsible for approving the plan with the start and end dates of the Auditors in Dubai, as well as the meetings and the deadline for the final report to be issued by the auditor.

 Once the audit day is scheduled, it will be exclusive for this activity. With the whole team aware of this, the company can organize itself better so that this day is not a problem from the productive point of view.

 Formalize processes

 Prepare documents to better explain the purpose of the processes, as well as the responsibility of each employee. Also work on building a trained team to provide employees with the necessary clarifications regarding the procedures to be performed in the work environment. Also, be sure to work with the team and supervise the auditor.

 Choose between internal or external audit

 By hiring a company specialized in external auditing, you can count on personalized reports, security and assistance to obtain significant data to evaluate the processes.

 With internal audit, in turn, you can train your team so that they can act in a more specific way for your type of business.

 Anyway, choosing the most specific solution in relation to your company's needs and having quality professionals is essential.

 Establish a timeline

 Organize your team so that it acts according to the previously prepared calendar. Therefore, define points such as:

  • activities and processes to be evaluated;
  • date and time for the audit;
  • auditors' names;
  • names of those involved;
  • names of those responsible for resolving doubts.

 Make tests

 It is possible to run simulations even before starting the audit. Thus, the auditor can test the internal controls in order to make sure that the level of security is really adequate to the needs of the enterprise.

 Different tests can be applied depending on the characteristics and requirements of each department, as well as the company as a whole. It is according to the specific characteristics that it will be possible to determine the level of risks, as well as the company's internal processes and controls. Some examples are observance tests, substantive tests and the analysis of different scenarios.

 In compliance tests, it is up to the auditor to check that the internal processes are in order, checking that the team is complying with the rules. In the case of substantive tests, the auditor seeks evidence regarding negotiations to arrive at his own opinion regarding specific events. In the analysis of different scenarios, the auditor assesses different situations for the application of tests, analyzing records and documents or identifying inconsistencies in internal controls.


Read also: ERP Accounting Software solutions in Dubai