Six Types of Audits That an Auditing Firm Performs

Do you own a company in the UAE? Do you need auditing services? Are you searching for a firm that can do the job for you? Fortunately, there are some top audit firms in Dubai UAE. They are professionally robust companies that are efficient in handling all kinds of accounting projects.

There are numerous varieties in types of audit, too. It is always useful to know about the details of various categories of auditing while hiring the services of an external audit firm. Read along to know further details on this matter.

External Audit

As the name suggests, there is an external auditor that takes care of the financial transactions of the company. In many cases, the government or an authoritative body employs an external auditor to know about the accounting details of a company. Also, if you are a company who does not want to complicate business through an internal audit department, then you can conveniently hire the services of an external audit firm.

Internal Audit

This is also known as operational audit, technically. It is obvious that internal audit is just opposite to external audit in terms of definition. There is an internal auditing department within the framework of the business. No external firm is employed to do the audit of the company. The scope of all types of accounting operations is limited to the internal departments of the company. The auditors are the employees of the company.

Forensic Audit

When there are legal implications in the business operations and related matters in a company, the need of forensic audit arises. It can involve checking the details in matters of fund misappropriation. Also, in cases of money laundering, there is a strict requirement of forensic auditing. This is important, too, in matters of insurance claims.

Tax Audit

Tax audit, as the term suggests, focuses on the genuineness of the tax returns that a company files with the authorities. The auditor checks all kinds of transactions related to taxes. An assessment is conducted and a report is submitted to the concerned authority.

Audit of Information System

IT-based audit is termed as the audit of information systems. In this type of audit, the design systems and control frameworks of the business are assessed. Also, the matters of data privacy and integrity are thoroughly checked.

Compliance Audit

The compliance audit is done within the statutory audit in order to comply with the local laws and regulations specific to a region or country.

Get Expert Advice

If you want to know about different types of audit, it is intelligent to seek information from auditing and accounting firms in Dubai.