What are the different types of audits in views of Accounting services in Dubai

 

• A Performance Audit – This type of audit is used to assess whether a government agency, such as a school district, is efficiently and effectively achieving its objectives. The auditor may find ways to change the way the agency operates in order to improve its performance.

• A Compliance Audit – This type of audit determines whether an organization is complying with those regulations which have been established for its operations.

• An Investigative Audit – This type of audit is conducted by an auditing firm on behalf of a company's clients who suspect that their company's financial statements or operations may be fraudulent.

• A Vendor/Supplier Audit – This type of audit occurs when one company needs to know whether the financial statements of another are reliable, i.e. they have been accounting services in Dubai for accurately and honestly.

Different types of audits can help you to stay clear of penalties and further tax issues. Knowing the different types of audits will give you a better understanding of how particular audits work and why they occur. The three main types of audits are:

1) Tax audit: An IRS senior revenue agent reviews your records, income statements, assets, liabilities, etc., to make sure that all your deductions are accounting services in Dubai for accordingly. They will ask you to provide receipts for certain expenses or complete additional questionnaires in order to make this process go smoothly. This is typically what most people think about when they hear 'tax audit'.

2) Financial Statement Audit: This can be performed by both an independent CPA (certified public accounting services in Dubai) and internal personnel at the company. This type of audit is most commonly performed on a company's financial statements, which include balance sheets and income statements. These audits are usually more in-depth than the first type of audit due to their close attention to detail.

3) Operational or internal controls: Internal controls can involve procedures related to your firm's operations and activities that you should be following (or not following). A good example would be keeping track of check numbers when issuing checks against a checking accounting service in Dubai; this way you will know exactly what checks have been cashed and by whom they were cashed.

Internal controls often lead to tax fraud as people try to conceal revenue or overstate expenses, so it is always beneficial for to conduct some sort of operational audit.