A statutory audit is a type of independent audit required by law. It is conducted to ensure that a company's financial statements accurately reflect its financial position and performance and are in compliance with applicable laws and regulations.
The purpose of a statutory audit is to provide an objective and independent assessment of a company's financial information, which is used by stakeholders, such as investors, creditors, and regulators, to make informed decisions. The statutory audit process thoroughly examines a company's financial records, internal controls, and compliance with laws and regulations.
A statutory audit is advantageous in several ways. It helps improve the company's image and goodwill, increases its public confidence and credibility, and helps customers and investors get a transparent picture of a firm's fiscal position and performance.
How Can A Statutory Audit Be Useful To A Firm in UAE?
The statutory audit may be helpful for companies operating in the UAE in the following ways:
- All UAE mainland companies must get their accounts and records audited by a licensed statutory auditor. Various free-zone companies may have specific requirements.
- When renewing business licenses, companies must submit their statutory audit reports.
- The companies may be required to provide all statutory audit reports when they approach any bank or financial institution to get loans, capital investments, etc.
- The statutory audit report of all the financial transactions and accounts must be provided to the shareholders, general public, and other entities to know the current financial position in the case of a public company.
- In the course of the share transfer of the company, the statutory audit may play the role of a central reference point to determine the accuracy and reliability of the accounts and transactions.
- A statutory audit report provides a complete picture of a company, so the public and interested parties can evaluate its current financial position. It also helps to build public confidence and credibility in the company.
Why choose SPK auditors for Statutory Audit services in UAE?
SPK is known for providing the best assistance to its clients when it comes to statutory audit services in maintaining accurate and error-free records of all financial transactions. Our professionals are always ready to help you with all kinds of accounting and auditing challenges. We always focus on providing personalized and customized services per our clientele's requirements. We are always there to guide our clients regarding all statutory audit requirements. For more information, feel free to contact us.