Five Reasons Why Auditing is Important for Business

 For recording Financial Transactions in a business, accounting is most important. The financial stability of any business cannot be stated without accounting. Therefore, accounting plays a vital role in preparing accurate financial audit. The basic purpose of accounting is to provide help and assistance to stakeholders and enable business decisions with the help of financial information.

Accounting is a procedure including the subsequent steps–

·         Recording

·         Summarizing

·         Analyzing

·         Collecting

·         Ensuring Accuracy

Accounting services is commonly mentioned as the “Language of Business. Accounting is important because to grow the business, there must be a process that can be predicted and measured. This involves a methodology of tracking –

 

• Business assets
• Liabilities
• Income

 

The main objective of an accounting information system (AIS) is –

·         Collection

·         Storing

·         Collating financial and accounting data

·         Creating informational reports

The above details help managers and other VAT consultancy in Dubai to make proper business decisions. Each procedure in the accounting sequence plays an important role in making valid entries and managing the company’s financial assets each time a buying or procurement is made, or an income is earned. Therefore, if a company decides to implement an accounting sequence, it must follow each step correctly.

An Accountant is a professional who takes care of accounting transactions and shows financial functions. Frequently, the accountant bargains with third parties, such as –

·         Vendors

·         Customers

·         Financial Institutions

Accountants can support in discovering areas for extension by providing information on things such as –

·         Cash flow plans

·         Inventory Management

·         Pricing

·         Business Financing

Importance of auditing in today’s business

Auditing is a major business requirement that includes assessing evidence and documentation about the economic and transaction activities of a company. The purpose of auditing is to provide an open-minded, independent examination of the financial statements, which increases the profit and reliability of the VAT tax consultant in Dubai created by management, thus increasing user confidence in the financial statement, reducing investor risk and accordingly reducing costs. The purpose of auditing is to follow and ensure compliance with its several corporate objectives.

The purpose of auditing is to provide an independent opinion to the shareholders on the business's genuineness and state of affairs in the form of financial statements, whether they have been prepared in compliance with the Companies and other relevant Acts and to report by exception to the shareholders. In addition, the Internal Revenue Service can audit to verify the accuracy of a taxpayer's returns and other financial transactions.

·         Compliance Audit

·         Construction Audit

·         Financial Audit

·         Information Systems Audit

·         Investigative & Forensic Audit

·         Operational Audit

·         Tax Audit

·         Cost Audit

Auditing can be defined as examining documents and collating evidence, which are involved in accounting and other transactions. Mainly it helps to establish the intensity with which an audit is accomplished. It can range from simple to complex processes to examine the company documentations.