Audit preparation can be overwhelming for business owners, especially if you are not fully prepared for it. Some business owners prepare a week before the scheduled audit. But for some experts, a longer preparation should be done to ensure that the auditing process would proceed as follows.
According to reputable top company formation consultants in dubai, the key to a successful auditing is starting the preparations early as possible. And taking the initiative to do such can help you simplify the process. Here are some prep tips that you can do:
- Do your own auditing
Business experts say that you shouldn’t wait for the results that will be provided by the auditing team. It would be best if you can conduct your own auditing to know if there are discrepancies that you need to resolve in advance. This initiative will not only help the auditors, but you can resolve the issues before the scheduled auditing comes. Waiting for the fieldwork would not only cause worry and anxiety on your part, but it would lessen the allotted time for resolving issues and discrepancies. The earlier you know, the better.
- Be diligent in documenting your transactions
One of the causes of delays and difficulty in auditing is the lack of information provided by the clients. Accounting books that are not updated and missing contracts and financial statements can be a headache for both the client and the auditors. It can also result in getting an “adverse opinion” remark which states that records are grossly misrepresented. Make it a habit to document all transactions and safekeep your papers. If necessary, consult with companies providing auditing company in difc to help keep track of your finances and records.
- Reconcile items in a timely manner
Some business owners reconcile discrepancies and other items at the end of the year. But business experts strongly advise entrepreneurs against this habit. It would be best to do a monthly reconciliation of items so you will have more time to investigate and check if there are misrepresentations and you will have time to resolve them.
- Set up a meeting with your auditors
There are instances when business owners meet their auditors on the first day of the auditing process. It would be best to meet the auditing team in advance to know what documents you need to prepare in lieu of the upcoming auditing. You can also clarify some matters and know what you need to do to facilitate the process.