Auditing is a necessary step to ensure that the company is moving in the right direction. Although some business owners see this as merely complying with regulations, going through this process would help you identify areas for improvement and resolve discrepancies that can affect the progress of the company.
Given the importance of this step, the company management should ensure that this would go well and as scheduled. Business owners need to avoid these pitfalls to make the process seamless:
- Not recognizing the importance of the process
As mentioned, some business owners see auditing as a mere compliance to rules, which is why they do this not out of their own volition, thus, ignoring the process and the criteria. top audit firm in dubai always stressed the significance of auditing to their clients. Business owners need to see this step in a different perspective and how this can help their company move forward. This would make them more cooperative and enthusiastic.
- Not being prepared for auditing
Preparation is necessary when your company is up for auditing. This would mean preparing everything in advance and prior to the scheduled auditing. Lack of preparation can lead to delays on your auditing timeline and also getting unlikely remarks like adverse and disclaimer of opinion.
You need to meet with reputable auditing firms in difc to prepare your accounting books, financial statements, and all the necessary papers needed for the upcoming audit. You also need to meet with your team and brief them about the auditing. Let them know what will happen and what is expected of them. They need to know what to do and what will happen in case they will be interviewed by the auditors.
- Not following the recommendations of the auditors
Auditing does not stop with getting the results. There should be a follow through to ensure that the recommendations are being recognized and followed. Failure to implement the suggestion would not only cause the setback to the company, but it will also affect your compliance. There would be a high chance that the governing agencies will impose a fine or punishment like work and operation stoppage for those who are not complying with the rules.
Once the auditors submitted their reports, be sure to understand their recommendations and endorsements. If necessary, set up a meeting with them so they can provide or explain each aspect of the report. Create an action plan based on the report and set a realistic timetable to implement these suggestions.