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Role of Auditors in detecting errors and frauds

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The role of auditors in the UAE is to verify the records of the company in an amicable manner. They are supposed to keep in consideration all the ifs and buts of the company’s financial statements. Their main job is to investigate whether the company is complying with the rules and regulations of the authorities or not. If they find any problem in any of the areas, they right away inform about it to the company so that it may alter it.

There are two types of auditors that you can come across. One is the internal auditor while the other is the external auditor. The external auditors are independent entities that are sent by the governmental authorities to check the working of the company. They go through the financial statements of the company and extract everything that is against the laws in the UAE. Then there are these internal auditors which are hired by the company itself so that it can get an idea about different problems that may exist in the company but may still be hidden.

 

Auditors in fraud detection

During the audit, the auditors detect different errors that may be manipulated before or may appear due to the carelessness of the company’s bookkeepers.

There are a lot of errors that may occur in the financial statements of the company. The detection of errors is basically what helps in the detection of fraud. Different companies keep on hiring the internal auditors so that they may keep the data accurate from their part and may get saved during the external audit.

 

How the audit saves the company from frauds?

When the auditor checks the account details of the company, he gets to figure out a lot of stuff. He gets to extract a lot of information which may be manipulating the whole data. This can sometimes become disastrous for the companies if not identified on time. The auditors pick such mistakes up and inform the companies as soon as possible. This saves the company from getting into any type of loss. The accuracy of financial statements from every point of view is what the auditors have to determine. If they find any problem in the account details, they will bring it to the ground right away without wasting a moment. This can help the companies in identifying someone in their company is trying to betray them or deceive them in one way or the other.

Hiring the auditors in the UAE has become the need of the time. If you want to save your company form betrayals, you must carry out audits from time to time. This will save your company during the external audits when there will be no way out for the company. So, if you do not want to get into any trouble or pay fines because of inaccurate data in your financial statements, you should hire the internal auditors, such as Farahat & Co, from the audit firms so that they may get an idea about how your company is doing.

Partner of Farahat & Co – Senior Consultant Forensic Accounting, Audit & Assurance, Court Expert Witness 30 Years of experience Arabic / English speaking

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