All the public limited companies listed in the capital market of Dubai, Abu Dhabi, and UAE are required to get their financial statements audited by an independent auditor annually. The internal audit report in UAE should have a Title, Addressee, Introductory paragraph, Qualified or unqualified opinion on the quality of financial statements, Basis for opinion, Key audit matters, Other information, Responsibility of management, Responsibility of the auditors, Other reporting responsibility, Auditor’s signature, and Date and place of a signature.
Artificial intelligence (AI) is associated with sci-fi and engineering concepts. Artificial intelligence is changing the auditing function in UAE by helping process massive databases, hurrying up the accounting records recording, improving the way of processing the data, generating new risk classes, reducing the human interplay in auditing functions, and making AI specialized auditors necessary. The auditing function is progressing through a rapid transformation. The challenge persists for auditors in UAE to secure the true potential of AI for their advantage.
Audit evidence is crucial to support the auditor’s opinion and uphold the accuracy of financial reporting. It is vital for the worthiness of the company’s sincerity and development. The audit evidence in UAE should be sufficient, appropriate, reliable, and relevant. All auditors in Dubai should employ both internal and external sources to collect audit evidence. The varied techniques enabling auditors in UAE to collect audit evidence are Inspection of Documents and Records, Inspection of Tangible Assets, Observation Techniques, Inquiry, Confirmation, Recalculation, Re-performance, and Analytical Methods.
Audit sampling in UAE is a selection of samples from activities illustrative of the actual transaction situations. The factors that influence the sample size are the probability of material misstatement, expected error to be more than the level of expected error, and level of tolerable error. The methods used for selecting samples are systematic selection, random selection, monetary unit sampling, and haphazard selection. The principal purpose of auditors in UAE behind conducting sampling is to provide appropriate data representing the population.
Auditing in Dubai is the first and the most vital action for the management to recognize the business performance uncertainties. It checks for the sincerity of the transactions that help design the audit processes. The audit in UAE adds value to a company by pinpointing the flaws in a business, bringing more investors, enhancing business productivity, reducing the fraud rate, encouraging business augmentation, and assisting in decision-making. Auditing in Dubai is an opportunity for businesses to increase efficiency and move towards better profitability.
The auditing process is a requirement that every entity needs to endure without failing. The audit in UAE intends at bringing out operational or financial, or even managerial deviations. The role an auditor in UAE can play in the growth of a business is solving issues, weighing internal proceedings, developing plans for businesses, providing knowledge of experience in various fields of commerce, strengthening the audit process by playing synergist between business and the Government, and providing guidance.