The types of auditing clients are expansive. There are several reasons for getting audited. For the types of audits, there is a set of specific skills required for an auditor. Audit firms in Dubai have certified and skilled auditors who are capable of performing almost all types of audits. Here in this article, we would elaborately discuss the clients who get audited and in what situations.
Public companies – Publicly run companies sell their stock shares to investors and before selling, they must be audited by the external auditors. These audits would become proof that their financial statements are devoid of any material misstatements and errors. They assure the investors that all the events that can hurt the company are disclosed.
Companies tied with federal and state contracts – The US companies who do business with the Government are often subject to audit. These frequent audits are done to reassure that the companies are following the terms and conditions mentioned in the contracts. If the company ever receives any grant from the Government, they have to prove it through an audit that they have spent the money for the purpose that was interpreted in the grant’s terms and conditions.
The company that requires bond – The bonding companies always have distinctive standards, rates, and requirements. Some companies are liberal with their approval procedures while some accept only the clients with higher credit ratings. That is why there is a difference between the premium rates. The audits are done to confirm that the facts provided by the business to the bonding company are accurate.
Government entities – Government audits are performed for those who fall under state, local, federal, and Indian tribal governments. The aim of the state, local, and federal audits is to confirm that their funds are being spent effectively and efficiently. The audit reports would portray if the government policies and programs can meet their set objectives. The tax-exempt bodies are also subject to audit certified and independent public accountants.
If you are an aspiring auditor, you must have got an idea about your probable clients. This will help you to prepare yourself before taking up a job in any of the accounting firms in Dubai.