Accounting and financial audit: definition, role in the company

The audit is a procedure which certifies the accounts of a company. It is ensured by an auditor (person in charge of this mission) who attests to the good financial health of the company as well as the regularity of its management. A good audit thus ensures certification to said company with different partners or organizations for example. Beyond this control mission, the auditor thanks to his analysis allows his client to foresee the future steps to be taken. The audit therefore allows analysis in many very different areas: accounting, finance, management, the product development process, etc.

The profession of auditor

The auditor is a self-employed person or an employee of a company specializing in auditing. The most important part of his work concerns the accounting and financial audit of a company:

·        Control the company's accounts,

·        Evaluate stocks,

·        auditors in Dubai

·        Check the good financial health of his client,

·        Be aware of new national and international legislation (etc.).

The auditor is generally an auditor or a chartered accountant, he can also be a graduate of bac + 5 (master 2) in a financial field. A good auditor is attentive and rigorous in his work because it is he who certifies the financial state and the conformity of the documents of the company calling on his services.

Internal Audit

The auditor (or audit team) is employed by the company. He controls, verifies, inspects and monitors the company's accounts with a critical view. The audit can be financial or accounting and financial.

External audit

The auditor is outside the company. As an auditor is external to a company, his mission is always an external audit. The points to be checked will not be fixed by the company being audited but by the sponsor. As in the internal audit, the auditor will prepare a report which he will then submit to the applicant

Third party audit

This form of audit is controlled by a neutral entity, generally an organization granting certain certifications to ensure that the company being audited respects the rules in force. The audit once carried out will highlight certain points which will determine or not the obtaining of an ISO standard for example.

Read also: Corporate Finance Services in UAE

The importance of performing an audit

Analyzing the functioning of your company on as many points as possible is very important and can be of little help. Indeed, the fact that an accountant attests to the veracity of the accounting entries allows 

Difference between internal audit and external audit 2020

Key difference - Internal vs External Audit

The control process is one of the essential aspects of an organization for its long-term survival and success. The audit committee is appointed by the board of directors to review the effectiveness of the company's audit process. Internal audit and external audit are the two main components of the audit process. The fundamental difference between internal and external audit is that internal audit is a function that ensures independent and objective assurance that the internal control system and the risk management system operate effectively while the audit is an independent function outside the organization that assesses the financial and risk aspects to comply with the statutory auditors in UAE requirements.

What is Internal Audit?

Internal audit is a function that provides independent and objective assurance that an organization's internal control and risk management system works effectively. The internal audit function is led by the internal auditor who has recent and relevant financial experience. The internal auditor is appointed by the audit committee and the internal auditor is responsible for the members of the control committee and must report periodically on the results of the audits. The audit committee has the following roles to perform with regard to internal audit.

1.     To monitor and verify the effectiveness of the internal audit function of the company

2.     Ensure that the internal audit function has access to adequate financial resources and other resources to perform its functions

3.     Make sure that the internal audit function has support and access to relevant information from all parts of the organization to carry out a successful audit

4.     Report to the board and make appropriate recommendations on how to improve the company's internal control system

5.     Consider management's response to any external or internal audit recommendations

If the company does not have an internal audit function (this is possible in a certain type of company, particularly in small companies where an external audit function exists), the need for an internal audit function should be considered annually.

What is external audit?

External audit is an independent function outside the organization that assesses the financial and risk aspects associated with compliance with the statutory audit requirements. The main role of the external audit is to provide an opinion if the company's financial statements present a true and correct view and evaluate the effectiveness of the internal audit function. Therefore, the internal control function is replaced by the external control function. The external audit function is managed by the external auditor, appointed by the company's shareholders. The audit committee plays the following role with regard to external audit.

1.     Assign recommendations to the board in relation to the appointment, removal and reelection and external auditor

2.     Approve the remuneration and conditions of engagement of the external auditor

3.     Monitor and verify the independence of the external auditor, performance and objectivity, and develop and implement the policy on the engagement of the external auditor to provide non-audit services

What is the difference between internal and external audit?

Internal audit to external hearing

Internal audit

Internal audit is a function that provides independent and objective assurance that an organization's internal control and risk management system works effectively.

Main responsibilities

The main responsibility of Internal Audit is to review the effectiveness of the internal control system.

Legal requirement

The availability of an internal audit function is not mandatory by law.

Appointment of the auditor

The internal auditor is appointed by the audit committee.

External audit

1.     External audit is an independent function outside the organization that assesses the financial and risk aspects associated with compliance with the statutory audit requirements.

2.     The primary responsibility of the external audit authority is to provide an opinion if the company's financial statements present a true and correct view.

3.     All companies must have an external audit function required by law.

4.     Shareholders appoint the external auditor.

Summary - Internal Audit to External Hearing

The difference between the internal and external audit is a distinct position in which the internal audit is conducted by corporate employees while the external audit is conducted by an external party to the organization. The control committee should meet at least twice a year to carry out its audit on the effectiveness of the internal audit function and the management board should also review the effectiveness of the auditors in Dubai committee annually. Since the external auditor is appointed by the shareholders and the function replaces the internal audit, the external audit is considered more credible.

Strategic Marketing: the Importance of Having a Plan to Grow Your Own Business Valuations in UAE!

Have you ever heard of strategic marketing?

What we will do in today's guide is to go and understand how this tool can help you get your business off the ground.

What is strategic marketing?

The marketing strategies differ in various stages and types, today we often hear about digital marketing, operational or strategic.

If we look for the strategic marketing definition, we note that this indicates:

“Marketing Techniques That Allow You to Plan a Company's Activities over the Long Term.”

This activity requires that different strategic details are taken into account, such as profitability, the portfolio of services and products, maximization of turnover.

The strategic marketing therefore provides a plan that extends in the long run, in some cases can be outlined projects that go beyond the three years. The choice of the strategic period, of course, depends on the company and also on how the project must be integrated with the strategies of operational marketing.

Marketing plan: why is it important?

Before going into the details of strategic marketing strategies, it is good to know why it is important to have a plan within one's own business and corporate reality.

The planning and organization, must take place with specific rules, with data and accurate readings. Therefore precision is essential to be able to exploit all the tools we have available thanks to the assumptions of strategic marketing.

Every company, even the smallest one, should have a marketing plan that is both operational and strategic, which allows a good synergy between the two.

“Thanks To Planning, You Know The Steps To Follow As You Proceed With Your Business.”

The marketing activity, in fact, should not be thought of only as a direct action for the sale of a product or service.

Today, this essential practice has increasingly expanded, becoming a way to turn your ideas and projects into reality.

The marketing plan is important not only because it allows you to sell more but also because it allows you to achieve your goals of entrepreneurial success.

Strategic marketing: the theory

Like any area of ​​the economy, marketing also has a theoretical basis that can be understood and studied from the definitions that can be found in books.

Strategic marketing: main books? Well there are so many books that deal with this subject, of course some authors are more important and known than others.

Peter Drucker

Peter Drucker defined strategic marketing as a process that involves different phases, from the analysis of competitors to that of the market and the target.

According to Drucker, this branch of marketing allows the entrepreneur to understand what his own positioning in the market is and how the needs of the customers can be satisfied.

Jean-Jacques Lambin

A theoretical text, often used also at school level is that of Lambin, he also gives his own interpretation of strategic marketing. According to Jean-Jacques Lambin strategic marketing is positioned in the medium-long term, this involves an analysis of the needs of the market in order to develop products and services that are intended for their target.

Furthermore, he continues by stating that the task of marketing strategies is to find a peculiarity that can make one's business different from that of its competitors. In this way we gain a lasting, defensible and competitive advantage.

Philip Kotler

Finally, when we talk about strategic marketing theory we must also remember Kotler's assumptions. Philip Kotler focuses mainly on how a company must develop an advantage over the competition through planning.

So his theory is mainly linked to the theme of positioning within a specific market.

What are the differences between operational and strategic marketing?

Knowing how to intelligently balance your marketing mix is necessary to achieve the desired results over time. Strategic marketing and, secondly, operational digital marketing services are necessary so that these results can be achieved.

The main differences between strategic marketing and operational digital marketing services concern their nature and, consequently, their temporal order of implementation.

“In Fact, Strategic Marketing Is What Creates The Foundations And Foundations For The Operational Part To Act.”

All the work of analysis and definition of objectives, as well as the strategy for these to be achieved, is part of strategic marketing. Subsequently the operative marketing takes over, the real part of the action, which does nothing but "concretely field" the strategic part.

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Strategic marketing: what is SWOT analysis?

As we mentioned at the beginning, planning and analysis are the basis of marketing. The tools to plan a good strategic marketing project are different; among these is the SWOT analysis

The SWOT analysis or matrix was designed by Albert Humphrey between the 1960s and the 1970s. This is a tool to plan your business strategy and to know your strengths, any weaknesses, the threats of competition, and the opportunities that a project or a company has.

In fact the word SWOT is an acronym that indicates: Strengths (strength), Weaknesses (weaknesses), Opportunities (opportunities), Threats (threats) .

When you do a Swot analysis you can understand the current situation of your company. This is possible by asking you four questions:

·         What are the strengths?

·         What are the weaknesses?

·         How to take advantage of your opportunities?

·         How to reduce external threats?

By answering correctly, with data in hand, these questions can finally outline your future strategy in the best possible way.

How to implement a strategic marketing plan in 5 steps

There are many examples of marketing strategies, but we want to help you understand how to create a strategic 5-step marketing plan.

1. Study the position of your company

The first thing to do is to know how your business is positioned and what its current financial situation is. To analyze also there is all the previous of your company: the strategies already implemented complete with financial results obtained. And don't forget the aforementioned SWOT analysis.

The more accurate your data is, the more you will lay a solid foundation for implementing a successful strategy.

2. Study the market

During the creation of a strategic marketing plan it is necessary to study the market to assess what the real opportunities of the moment are , and how these may or may not be exploited both in the short and in the long term. Strategic marketing, marketing plan objective

This analysis is necessary in order to understand how to plan the actions of your company and direct the resources to the best.

3. Define the objective of the strategy

Now that you have analyzed your company Business Valuations in UAE and the market to which it refers, you have the means to define your goal.

Indeed, a strategic marketing plan must necessarily outline what the objective is to achieve through the strategies. Having a goal serves to rationalize the resources of distribution, production and marketing. The strategies serve instead to convert the objectives into reality.

Remember, in order for your strategy not to peak and not waste resources uselessly, it is important that your goal is:

·         Accurate.

·         Reachable.

·         Measurable.

·         Realistic.

·         Time related.

4. Define the target

Among the essential steps of a strategic marketing plan is the definition of the target, all the products and services must be based on specific targets, or on a specific category of potential customers. Strategic marketing, target definition

To create a winning strategy it is necessary to study and analyze the needs of a specific target and be as specific as possible in defining it.

5. Make an estimate of the budget available

Finally, to complete the strategic marketing plan it is necessary to outline the budget. One of the most important notes, in fact, includes the inclusion of a realistic marketing budget.

Only in this way will it be possible to understand how to dedicate one's economic resources to the best during the project implementation period.

Well, now you have all the credentials to implement your successful marketing strategy .