External Audit

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External Audit Service in Bahrain

External Audit Service is just an examination and comment on the objects confirmed. A financial audit under a Best External Audit services in Bahrain entails a review of the ledgers and other pertinent documents. This will offer the auditor of a Top External Audit firm in Bahrain the data he needs to determine if the accounts have been kept up to date and have complied with all applicable legal, accounting, and financial reporting requirements.

External Audit Process

A well-planned verification is necessary to cover all financial items with audit materiality. An audit involves the collection and evaluation of evidence in support of conclusions arrived from the Best External Audit services in Bahrain. The procedures which will assist the auditor in this direction are:

  • Planning and risk assessment: Involves gaining an understanding of the business and the business environment in which it operates, and using this information to assess whether there may be risks that could impact the financial statements
  • Internal controls testing: Involves the assessment of the effectiveness of an entity’s suite of controls, concentrating on such areas for proper authorization, safeguarding of assets and the segregation of duties.
  • Substantive procedures: Involves a broad array of procedures, of a small sampling.
Apart from being unbiased, there are many advantages of conducting an external audit for a business:

  • A Complete and Comprehensive business report.
  • Ensures that all the compliance requirements of the jurisdiction are followed.
  • As it is conducted by a third party, it will also provide a different perspective on how to manage the business.
  • Assists the management in the judicious and proper utilization of resources, thus curbing wastage.
  • Increases the confidence of the investors and will bring in more investors.
  • Helps to understand the workings of the business and will prepare it for the future.

The different levels of assurances from the auditor’s point of view

An audit of a Top External Audit firm in Bahrain provides a high level of assurance. But a review engagement gives a reasonably lesser degree of assurance than an audit. As in a review, the auditor does not carry out all those procedures that are carried out in an audit. Publicly held entities must have their quarterly financial statements reviewed, in addition to the annual audit.Sometimes the requirement is only to report on individual items of financial data or on a set of financial statements to report on the factual findings, say to certify only the turnover of the company.The level of assurance in such agreed-upon procedures is again lower than in a review engagement. In the case of a compilation engagement, the auditor is called upon to prepare the financial statements – where his expertise in collecting, classifying and summarizing the financial information is only demanded and not designed to give any assurance on the financial statements.

  • Revenue
  • Procurement of Goods/ Services
  • Inventory
  • Logistics
  • Information Technology Infrastructure.
  • Finance
  • Fixed Assets
  • Statutory Compliance
  • Admin & general Operations, etc.

Why is External Audit required by Businesses?

There are many different reasons why a company requires an External Audit. Some of the benefits of External Audit to a business are as follows:

  • An External Audit provides an outlook about the business from an external point of view which can help the management to understand the business as well as the business environment.
  • It provides a benchmark to the businesses and also assists the management in planning for the future.
  • There are many compliance requirements that need to be fulfilled by a business, and an external audit helps in ensuring compliance.
  • An external Audit helps in increasing the credibility of the business and also helps in attracting more and more investors.

Things to take care of when deciding on an external audit for the first time

Before embarking on a journey to conduct an External Audit for your company, there are some points which should be kept in mind by the management. Some of the important points to keep in mind are:

  • First and foremost, the management should understand the basics of how an External Audit works and what results that can be obtained from it.
  • After understanding how the external Audit works, the management should obtain all the documents which will be required in the process.
  • In certain scenarios, it is not possible for the management to conduct an internal audit themselves. In such circumstances, the management needs to hire an expert who will understand the requirements of the business and will provide a solution accordingly.

    This is why it is suggested that the management should take the assistance of a reputed firm which will take care of all the auditing requirements of the company.

What is the difference between Internal Audit and an External Audit?

There are two different types of Audits available to a business, namely Internal Audit and External Audit. These audits provide similar end results but are different from each other.

  • An External Audit is usually performed by an individual or a team of individual who is not related to the organization, whereas the internal Audit is conducted by an individual or team of people who are under the payroll of the organization.
  • An External Audit is usually performed to examine if the information revealed by the management is correct and can be trusted, whereas an internal audit is conducted by the management to understand the business activities and if anything can be made better.
  • An external audit can be conducted after a business quarter or a financial year is over or when there is a huge change in the organization, either financial or structural. An internal audit can be conducted as per the need and requirement of the business as it is conducted by a specific department of the organization.

    • Follow-up and Action Taken Report

    As it will be a continuous process, the scope does not end with the submission of reports. The follow-up action taken report (ATR) will be presented to the management on the status of observations and its closure status. Any long-pending observations critical to the business will be bought to the notice of the management to set a further course of actions.
    Independent review and appraisal of the organization’s financial and relevant operational activities will be better when the auditor is not part of the organization and is independent.

    Why GSPU?

    GSPU is an Audit Firm offering a wide range of business services, including accounting, auditing, software consultancy and management. We have been providing the best audit services in Bahrain and other areas as well. At GSPU, we follow precise and proven approach to ensure that every item requiring investigation and verification of financial records are properly substantiated. Out External Audit Covers:

     

    • Analysis of business performance against predetermined management objectives.
    • Examining the accounting records and checking other evidence supporting financial statements.
    • Assessment of business risks and providing the relative suggestions.
      Follow-up & action taken Reports.

    Related Services

    Corporate Governance
    Information System
    Tax Audit
    Due Diligence
    Internal Audit
    External Audit
    Operational Audit
    Forensic Audit
    Investigation Audit
    Digital Audit

    How GSPU can help

    Examines books of accounts by standard
    auditing procedures

    Our auditor expresses his/her opinion on whether the
    accounts have been properly maintained and whether
    they have met all auditing requirements.

    Analyze social media strategy on various platforms,
    as well as competitors

    We analyze lead generation from social media driving traffic
    to your website and analyze the engagement on your
    social platforms.

    Ensures that the company's risk-reduction
    procedures

    We create risk assessment systems for global, financial,
    general, economic, political, industry, and company-
    specific hazards.

    Assists in Future Planning

    Businesses will be better prepared to face official tax audits
    if they have all of the relevant material produced by us and
    avoid errors caused by hurry at the last minute.

    Inquires company entity's financial, legal, &
    other statutory compliances

    We examine a business entity before entering into a contract
    or other agreement that calls for a certain standard of care.

    Assists the organization in the prevention of fraud

    Based on our analysis of the company's questionable financial
    and operational records, we produce a fraud investigation report.

    Contact us

    +973 -38393646

    info@gspubahrain.com

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