There are many steps to audit the fixed assets of a business in the United Arab Emirates (the UAE). They include assessing the type, location, and condition of the assets. All the documents that need to be scrutinized must be located in a place that is easily accessible by the business personnel. This way, the entire process can be very well managed and conducted with ease.
What is Fixed Assets In Business
The first step is to prepare a list of all the different categories of the fixed assets of the business in the United Arab Emirates (the UAE). The list can be prepared in accordance with the size and nature of the business. Once the list is ready, it should be divided into three categories: business fixed assets, personal fixed assets, and real estate owned by the business. This will allow the audit team to focus its attention on the areas that need the most attention.
The next step is to make the full inventory of the inventory items. This will allow the audit management to get a better picture of the inventory as a whole. All documents that pertain to the assets should be located in a safe place, preferably near the location of the business.
Manual Accounts Operating Managment
The next document to be reviewed during an audit is the Accounts Manual or the Operating Agreement. It is a legal document drawn up by the business and is required by the law to be strictly followed. The Audit Firm in Dubai will mainly look into the history of the company and the functioning of the Board of Directors (the topmost decision making body of the business) and the officers in charge of the various activities involved in the business. It will also contain information on the shareholders and the company’s directors (the next individuals involved in the business).
Statement & Balance Sheet
The business’s accountant usually prepares and submits the Accounts Manual for an audit. This book contains the basic operations of the business as well as its financial data and documentations. It is the second most important document in the business. The third type of documents that will be checked during a review of the fixed assets are the income statement and the balance sheet. These two documents provide accounting information about the business’s finances and will reveal the nature of the cash flows generated by the business. Auditors will focus specifically on these two documents when carrying out an audit of the fixed assets of a business in UAE.
The third set of audited documents that will be reviewed during the audit are the financial forecasts and the statement of earnings. This is the core report of an audit. In addition, the company’s Profit and Loss Statement and the statement of accounts will also be checked during an audit of the fixed assets of a business in UAE.
Inspection & Evaluation
Before the start of the audit process, it is advisable that all the necessary information about the business’ activities, including the working capital, the short-term and long-term loans, the trade receivables, the sales income, and the expenses should be collected. All these documents will help the auditor to make his inspection and evaluation. During the inspection, it is important for the auditor to gather information from all the documents that are relevant to the business’ operations. He checks the following information: the cash and accounts payable, the accounts receivable, the sales income and the inventory. Once all this information is gathered, the scope of the examination becomes limited.
During the audit process, the accountant may not check all the documents that are relevant to the business’s operations. This is because he may fail to see certain transactions that have taken place between you and the third party. For instance, if there has been a sale of a particular stock from your company, this transaction will not be captured in your books as an asset sale. However, the third party that bought the stock will be checked with his books so that all transactions entered into the books after the purchase can be accounted for in the audit process.