Auditing is primarily done on a company's financial records and statements to ensure that the financial statements are fair, meticulously prepared with all information, and meet the regulatory compliances according to the respective authority's statutory requirements and compliances. An audit can be conducted internally by an in-house team or externally by an outside firm according to the requirement of the company.
By auditing your company in Qatar with specialists, allow you to verify the validity & legality of your company’s financial documents, assists your business in an advisory role by recommending the best possible risk mitigation strategies, cost savings measures and guides you in maintaining a proper financial framework.
Why does your Business need Auditing?
The main aim of auditing is to enhance the efficiency and effectiveness of an organisation by systematically checking the accounts, financial statements, records and books. They provide financial reports which help the stakeholders, investors & business owners by offering a clear insight into the company’s finances helping them take a better, more informed decisions according to the findings.
Importantly, the audits are considered legal requirements according to the regulations in the State of Qatar. The audits are conducted monthly for larger corporations and annually for small businesses in Qatar. Moreover, certain companies receive compelling incentives for proper, accurate and timely financial reporting to the authorities. Financial reports from auditing accentuate the company's transparency as it encourages the investors to invest in your Qatari company with all the precise information on the business's finances.
Benefits of Auditing
Auditing offers wide-range of advantages to the organisation or business which is carrying it out. Besides, to deliver valuable information to the investors, shareholders and business owners, the auditing firm can assist your organization in the following aspects
- Ensure effectiveness in the operationsand proceduresof the organization
- Improve the efficiency of the company to meet its financial goals
- Examine your company’s accounts for understanding the company’s high-performaning assets
- Helps your company meet the general standards established by the respective governing bodies
- Better governance of the corporate compliance issues
- Prepare financial reports that aid you in making the right decisions
- Examine the company’s accounts and financial control systems for lapses
- Identifies redundancies in operational and control procedures
- Establishes monitoring procedures for internal processes
- Offers an external perspective of the day-day business operations
- Ensure compliance with the Qatari laws, procedures, policies, legislation, regulations and statutory requirements
- Provides reliable financial information about the business
- Determines the company’s accordance with the policies and procedures
- Evaluate the accuracy of the company’s financial records and statements
- Better financial risk management for handling internal control and solvency of the business
- Aids in protecting the company’s assets and reduce the potential for fraud
Types of Audit in Qatar
- Internal Audit
- External Audit
Categories of Audit in Qatar
- Income audit
- Night audit
- System audit
- Safety audit
- Compliance audit
- Environmental audit
- Process audit
- Risk-based audit
Stages of Auditing
The audit process generally has the objective of rendering an opinion on the accuracy of a company's financial statements. The process has distinct steps as it unfolds
During the planning portion of the audit, the auditor notifies the client about the audit, discusses the scope and objectives of the examination in a formal meeting with the organisational management, gathers information on critical processes, evaluates existing controls and plans the remaining audit steps.
- Audit Strategy
- Acquiring client information (Personnel, facilities, equipment, funds)
- Preliminary Review (Test of Control)
- Internal Control Review
2.Field Work/ Perform Audit
Fieldwork is defined as the process of gathering evidence and analysing and evaluating that evidence in accordance with the audit proposal. The purpose of fieldwork is to collect sufficient and relevant evidence to conclude or finding and to support recommendations.
- Transactional Testing
- Assessment of Risk
- Measuring Performance
3.Preparation of Audit Report
The audit report is a key deliverable of the audit which shows the results of the entire auditing process. The users of financial statements from the audit are investors, lenders, customers, and others base their decisions and plans on the audit reports of any enterprise. The audit report is always critical for influencing the perceived value of any company’s financial statement’s audit as the report issued is unbiased and objective in discharging the functions.
- Entry Meeting
- Discussion Draft
- Formal Draft
- Final Report with audit planning files, control files, procedures files, program files, permanent files
- Client Response
- Client Comments
- Exit Meeting
Depending upon the nature of the audit or the audit findings, the follow-up procedure may be conducted formally or informally. The follow-up may include
- Follow-up Review
- Follow-up Report
- Audit Annual Report to the Board
- Followed up Report
Performing auditing is a critical aspect that provides essential information needed for growing your business in Qatar. Hiring the right auditing experts can significantly assist you in following the compliance according to the Qatari laws and serves you as a guide to handling your company's finance better. In fact, the business in the State of Qatar is required to file their financial reports audited by qualified auditing firms annually to the Ministry of Economy and Commerce. Contact us for knowing more information on how to hire the best auditing service in Qatar.