An audit is a vital service for a business, be it a start-up or an established company. It helps in assessing the current situation of the company and also identify the likely threats that may come in the future. As we all know that Oman serves to be one of the growing economies and also provides a healthy business environment for both newbies and established businesses, the demand for the auditing services in the region has also gained a boost.
If you already have set up a business in Oman, or planning to do one, then you should also have a clear idea regarding what audit is all about. This treatise will give you in-depth information regarding the same. Let’s proceed.
What is an Audit?
Auditing is a process, on the completion of which, you can get a complete picture of what’s happening in the company. The audit process helps us in the formation of an opinion on whether our financial position is being reflected correctly and entirely by our financial reports. Now-a-days an audit report is an essential document as it not only tells us about the current status of the company to the owners but also acts as one of the significant factors which are looked by the investors before investing in a company.
Need for an Audit
An audit plays a crucial role for both the management and the investors. Here are four reasons to conduct an audit:
The audit report provides us with the necessary details that would help us in finding the shortfalls of our company and also helps us in the better allocation of your resources to the various functions present.
The auditors, after looking at the data, evaluate try to asses and identify all the potential threats that can harm the company
Provide a boost
If the audit report denotes positivity, it would not only attract more investors but would also instil confidence of the stakeholders of the company. It would also increase the goodwill of the company and improve the credit rating.
Strengths and Weakness
The audit report would contain all the necessary details which would help to find the strengths and weakness of a company. Both the management and the investors can use the information.
Steps to be taken
Now, let’s look at the auditing procedure which should be followed by a company
1.Preparing the Paperwork
The first step of an audit is to make all the necessary documents in order. An auditor may give a list of documents that will be required for the inspection.
2.Providing a Date
The auditor would give the date at which the audit will take place. Both the company and the auditor would prepare for this audit by looking over the information provided earlier in the documents.
3. Day of the Audit
On the day of the audit, the company needs to be at their best. The employees which are going to be questioned need to be knowledgeable about their domain of work and must not panic.
4.Preparing the report
Depending on the auditor and his plan the audit may last for two to three days. Once the audit is over, it is required that the auditor should prepare the report which should discuss all his findings in details and also provide the necessary solutions.
5.Concluding the Meeting
In the end, there is a meeting between the auditor and the management of the company which announces that the auditing process has been completed. The findings in the audit are then discussed by both the parties and the relevant solutions are figured out.
Thus, we can surmise that auditing is a fundamental process for any business, big or small. The benefits of auditing can help in not only in the proper allocation of resources but also in planning ahead.
We at Business Setup Worldwide offer the following auditing services in Georgia:
- Statutory audits and Non-statutory audits
- Due diligence
- Auditing of financial statements
- Review of financial statements
- Preparation of forecasts, projections and cash flow analysis
Our advisors in Oman will be more than happy to help you and provide a solution to all your concerns. In case of any doubt or concern regarding auditing, contact us.