WHAT IS THE IMPORTANCE OF A PAYROLL SYSTEM?

 The payment of the salary is something serious and must always be in a timely manner, since on the one hand the adequate fulfillment of this activity works as a motivation for the employees, in addition, it avoids dissatisfaction due to not receiving the payment of their job. In order to comply, there are tools such as a business management system that makes work easier, faster and more reliable.

 BENEFITS OF GOOD PAYROLL MANAGEMENT

 When companies have good Payroll services in UAE, work flow is efficient, there is productivity and confidence. In addition, organizations prevent problems with the treasury because by having good payroll methods they comply with the requirements of fiscal regulations.

 In order to achieve these advantages, the ideal is to implement SAP Business One Cloud , this system has different modules including one dedicated to payroll management. This software makes work more efficient as it minimizes errors, at the same time automates activities, saving time and effort.

 For the implementation of these systems to be a success. It is a Dubai company and specialized in distributing Auditors in UAE; offers the perfect support to implement in your organization for small and medium businesses.

 The benefits of using business software is that employees will get paid for their insurance benefits in accordance with the law, and will not risk losing them due to non-payment.

 With the use of payroll management, it is also ensured that there are no errors in the calculation process and that the fees and compensation of the employees are made on time. The program is efficient in its activities, it is also simple to use and can be used by payroll managers, human resources and even by employees in its self-service option.

 In addition, the time spent on tasks will be much less, therefore, the calculations will be made without investing large amounts of hours. This means that there is more productivity on the part of those in charge.

 It is very important to have a good payroll management since if employees have their payment late or incorrectly, they can make them feel upset and question their financial future in the company. This is an element so that the work environment begins to become negative, dissatisfied and distrustful.

 Now you know, a business software gives the security of being able to fulfill a payroll well done and on time. In addition, it leaves time for those in charge to allocate part of their day to other activities that have to do with operational processes.

 For greater security, companies like AAA-CAS with the experience of their consultants offer security, minimizing risks and guarantee that you will obtain the value that ERP Software solutions in Dubai  offers for your business management. Implementing these systems is simple if you have the best advice so that important processes such as payroll are well done, minimizing errors and time in their execution.

Read also: What is and what the role of external auditing in your company

What is and what the role of external auditing in your company

 

Learn about the role of external auditing and see how it can benefit your company.

 It is essential to submit any and all companies to the evaluation processes of how their resources are being used in order to improve them. In view of this, external Auditors in UAE, or independent auditing , as it is also known, emerged as part of the evolution of a company .

 It acts to ascertain all the internal procedures and policies defined by the company, making it possible to see whether the accounting and internal control systems are being effective and carried out within criteria that are healthy for the company's financial life.

 The external auditor works independently, with no employment relationship, and his attention is focused on the reliability of the accounting records. Most of the time, he also works in partnership with the internal auditor, to test the efficiency of the systems used.

 External and internal audits are usually linked to the accounting field and have common interests and a strong connection between their work. Usually, the internal audit works more as a coordination within the company, while the external audit seeks to prove the financial statements and, for this, it uses the results of the internal audit . Thus, these two areas should seek to unite their work to make better use of resources, benefits and skills.

 The work of verifying the equity and financial situation of companies is extremely important for future investors of funds and other business partnerships. As a security measure against the possibility of manipulating information, future investors demand that these statements be examined by a professional independent from the company and of recognized technical capacity.

 Qualified professionals,  must have an obligation to meet the company's needs with regard to the reliability of financial information, in addition to reviewing operations and internal control , generating reports and reports that prove their real financial situation. .

 Read also: Are you looking for ERP Accounting Software solutions in Dubai

 Do you have anything to add about the importance of external auditing? Share your opinion!

Specific Audit of Financial Controls

 Understand how the specific Audit of Financial Controls works.

Characterized by the careful verification of documents, reports and internal controls, the Specific Audit of Financial Controls allows verifying the veracity of the information and numbers managed by the financial department of a company, used by the administrators in their analyzes to make important decisions related to the conduct of the Business.

The starting point for carrying out this type of audit is a survey of the existing financial documentation, such as sales orders, receipts, invoices, purchase quotations, bank statements and any other record associated with the company's accounts receivable and payable. This survey consists of supporting documentation, for accurate checking of the numbers presented in the auxiliary reports developed by the finance department.

Any divergence or inconsistency identified can be considered as a risk factor in relation to the veracity of the financial figures, which may therefore reflect on the management of the business.

Another important phase is the evaluation of the information system modules used to generate these data, with adherence tests, also considering their integration with the other modules used by the company's key departments.

This specific audit must also pay attention to compliance with the rules and policies established by management for the proper functioning of the financial department, verifying, for example, whether employees are performing their tasks in accordance with the department's procedures manual and whether their achievement demonstrates weakness for the occurrence of errors and fraud.

This type of specific Auditors in Dubai, focused exclusively on the financial controls of the company, should not be confused with the audit of the financial statements , performed with the purpose of verifying whether the financial statements prepared by the company are in accordance with the accounting practices adopted in the United Arab Emirates.

Read also: SMART BUSINESS, HOW TO BUILD IT?

Why hire an independent audit for your company?

 The need to hire an independent audit arises from the watchword of any business - trust.

 No investor or financial institution will invest money in a business that does not present reliable financial and accounting information. The independent audit serves to examine this information and issue an opinion on its reliability.

 In addition, an independent audit can help the entrepreneur to understand the main risk factors of his business from an operational, accounting and financial point of view, and to attest to the information, so that the organization has more secure subsidies for decision making. .

 The independent audit is not exclusive to large companies. Although it is mandatory for some sectors, large or public companies, small and medium entrepreneurs can also enjoy the benefits that it brings to the business.

 The lack of accounting and financial control is the main reason that leads companies to close their doors. The independent audit helps the entrepreneur to overcome the lack of obstacles, and give more security to the information he provides to the tax authorities, creating the foundation for the company to survive in an increasingly competitive market.

 If your company intends to expand its business, it is important to prepare as soon as possible to meet the future needs of the enterprise. The independent Auditors in Dubai  helps prepare your business for the future, strengthening your business in the process of corporate governance.

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Read also: DISCOVER 7 ADVANTAGES OF PERFORMING INTERNAL AUDIT IN YOUR COMPANY

 

Read also: Risk management: what is its importance and relationship with the organization's internal controls?

  

Read also:  The importance of external auditing for companies, third parties and investors

 

Read also: What is the importance of conducting an audit in the company

 

For the market and the community, an audited company demonstrates its results with a high level of information and confidence, making its participation in the development of the country clear, becoming much more reputable and with greater credibility.

DISCOVER 7 ADVANTAGES OF PERFORMING INTERNAL AUDIT IN YOUR COMPANY

 

Compliance is no longer an ideal and has become a reality in many United Arab Emirates companies. More and more managers understand the need to take measures to find and combat unethical behavior  and corruption in organizations. However, it is still common for there to be confusion between these processes and internal audit.

Even some industry professionals ( compliance officers  and auditors) often confuse the areas, believing that just one of them is enough. Hence the importance of delimiting the performance of these functions. Both are essential for the smooth running of the company and, therefore, must be carried out separately.

In this post we explain what an internal audit is and what are its 7 main advantages. Read on and find out why you should do it in your business!

After All, What Is An Internal Auditor In Uae?

It is an independent activity, the objective of which is to add value to the company, through an evaluation and consultancy work. Internal audit is an objective, systematic process, used to assess corporate governance, the use of internal controls and risk management.

Its purpose is to assess the organization in a systemic way. The audit verifies whether the controls adopted are sufficient to resolve operational problems and threats, among other issues that can damage institutional efficiency and image.

WHAT IS THE DIFFERENCE BETWEEN AUDITING AND COMPLIANCE?

First of all, we must understand that compliance  means being in compliance with something, be it a law, a rule or an internal regulation. Thus, it consists of an attitude, a way of acting or a set of actions that involves all those belonging to the organization.

Thus, we cannot say that internal audit and compliance are the same, but that they are complementary. After all, both seek the best functioning of the company.

However, compliance is involved with the definition and establishment of rules, risk management and the awareness of employees and managers. While the audit seeks to analyze the controls and processes used, seeking to identify points for improvement or that generate growth opportunities, detecting irregularities in the organization.

In other words, compliance is concerned with implementing fraud detection and prevention tools. The internal audit, on the other hand, checks whether these standards are being well applied, according to samples and punctual and scheduled checks.

Another fundamental difference between compliance and internal auditing is the involvement of managers. If, on the one hand, they actively participate in the process of establishing rules and standards, on the other, they must be left out of the audit, in order to guarantee the exemption of the process, even if they are responsible for it.

Finally, it is also worth noting that the audit can be considered a response to the risks to which the company is exposed. Because internal controls must ensure that the organization is in compliance with the law. That is why, although they are not the same thing, they are codependent activities.

WHAT ARE THE ADVANTAGES OF CARRYING OUT THE INTERNAL AUDIT?

Given these concepts, we can now talk a little about the benefits of internal auditing. Obviously, they can vary according to the size, the area of ​​operation and the peculiarities of your organization. But in general, we can highlight the following 7 advantages.

1. Ensures the use of controls

The first advantage is related, precisely, to the application of internal controls. There is no point in investing in their implementation if they are not used well, as this way, it will not be possible to achieve the expected results. Thus, internal audit is a process of verifying the instruments used to control the company's processes, whatever they may be, and their effectiveness.

2. Check the application of policies

Likewise, internal policies must also be followed to the letter, not only serving as an ideal. The audit has the mission to reveal how much they are being respected and put into practice, as well as their effects on the organization's routine.

3. Evaluates the effectiveness of the standards

In addition to policies, standards must also be verified. While compliance is in charge of determining which ones are pertinent and creates means for inspection, the internal audit must certify if they are being met. In other words, together, these two instruments are fundamental for ensuring compliance, avoiding fraud and other problems arising from unethics or  corruption.  within the organization.

4. Anticipates and seeks to solve problems

In assessing policies, controls and standards, the audit is able to identify real or potential problems that may put the company at risk. So it is a way to prevent these problems from arising and, at the same time, to minimize their effects. It is good to remember that such occurrences can be quite harmful if they are not resolved in time, since they have already been subjected to a whole previous process of  analysis of compliance risks .

5. Identifies possibilities for improvement

The audit does not serve to identify only problems. On the contrary, it is easier to find points that can be improved or contribute to the growth of the company. That is why it is usually carried out before major changes, such as a merger or acquisition process.

6. Increases the reliability of the company

Like compliance, internal audit is a way to increase the trust of customers, suppliers, employees and others involved in the business. It is a way to seek transparency and maximum efficiency in processes, showing different audiences how important this is for the organization.

7. Contributes to decision making

Finally, it is important to highlight how much internal audit contributes to decision making, not only by pointing out opportunities. The fact is that having an external view - since managers do not participate in it - is a way of going further, of perceiving and foreseeing different scenarios and possibilities, something so important for decision-making.

Finally, the internal audit is the ideal tool to identify the effectiveness of all forms of control and the use of the proposed rules and policies. Therefore, it is worthwhile to know a little more and carry out this type of activity in your business.

 Read also:  5 reasons to hire an accounting form

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Did you like to know the advantages of internal auditing and want to check other tips to improve the management of your company? Then, subscribe to Compliance News in the form below and receive exclusive content.

Complete guide: How to open a company?

 

Just as you probably want to start a business , people around the world also dream of following the path of entrepreneurship. However, in the face of many demands and costs, this dream can end up becoming a nightmare for many, who end up giving up halfway or decide to skip some important steps in the opening process.

 As you may have noticed, having your own business is not an easy task, since most ventures require qualities that only an excellent professional possesses, but for those who accept the challenge, check out the step by step how to open a company and be ready for success. Prepared?

 What do you need to know before starting a business?

 Becoming a boss is the goal of many people, however, starting a company and making it a reality is not an easy task. In order to be an entrepreneur, in addition to the duties and responsibilities that the position requires, several skills are essential to make the venture work .

 First of all, you must ask yourself: is this investment a good deal? What are the risks? Do I have the ideal profile to lead? These are questions that you must answer sincerely and be consistent, your answers will be the starting point for opening a business.

 In addition, it is necessary to define which segment your company will operate in and whether it will be adequate to the demands of the market. In other words, to start a business you will need to plan ahead.

 Speaking of planning, it is good to have an action plan in mind, it will be responsible for defining the costs, the available resources, the main goals and objectives. Before taking the idea off the paper and putting it into practice, you need to find a strategic location for your company and identify the target audience that you intend to reach with the new business.

 How do I know if I'm ready for a deal?

 For some companies, courage is not lacking when starting a business, however, it is not always enough to keep an enterprise running. It is therefore essential to assess the right time to take the first step in the business world.

 Taking a conscience check is a smart move. In order to start a company, some skills are important and acting impulsively is not a good way to start things, since the best way is to know the job market and know the business strategies.

 Many entrepreneurs, who are just starting out, end up risking the business, without first knowing how to make decisions, make good planning, deal with employees, among others. Before “sinking your own boat”, try to know if you are prepared for this new phase.

 Where to start the opening of the company?

 To start a company, the future entrepreneur will face some bureaucracies that are part of the beginning of any business. Many complaints are made because of these requirements, but they are fundamental to the recognition of your activities and to ensure that your company does not receive an unwanted visit from an inspector in the future.

 And what are all these requirements?

 It is necessary to formalize your company, to define the legal nature, for that you will need to gather several documents and pay fees and taxes for the legalization of your business.

Before starting to think about opening a company, you must have a (National Register of Legal Entities). This document represents that your company is registered with the Ministry of Finance and Federal Revenue.

 But, if you have no free time to pursue these requirements, there is the possibility of taking the through the internet, through an application made available by the IRS. If you feel insecure in relation to the choice of regimes and frameworks of your company, there are accounting companies that offer assistance for starting companies registration. The right choices at the beginning can generate savings and bureaucratic optimization for your business.

 Social contract

 The social contract is a document that you may need more than once, to prepare it you can count on the help of a lawyer, who must also register it with a notary.

 The document must contain the name of the company, the value of the initial capital and the names of the owners of the business. This record is important to classify the type of segment of the initial business and what are the amounts of taxes that will be charged.

 State registration

 If the company you are opening operates in the trade, industry, transport or communication and energy services provider, State registration is mandatory. The other companies that provide services are exempt, but they must still contribute with another tax: ISS (Tax on Services).

 Banks, hospitals and laboratories are examples of companies that are exempt from state registration. But if the company provides outsourced services and also sells products, it will have to pay both taxes.

 Commercial Board

 The commercial board is the body whose function is to register the activities related to the different branches of companies in the country. Each United Arab Emirates state has its own board, which is also responsible for issues such as the issuance of judicial letters, certificates and registration forms, for example. example.

 For the opening of a company, you will also need the City Hall's operating permit. Generally, only registration with the IRS, the social contract and personal documents are charged.

 It is also essential to obtain the Health Surveillance and Fire Department Permit. Requirements that are fundamental in any location, to ensure everyone's safety - especially if your company operates in the food industry.

 How to make a business plan?

 With the legal issues already resolved, we can begin to put together a business plan. But what is this? The business plan is a roadmap used by new entrepreneurs.

 Its purpose is to plan, in the short, medium and long term, all the necessary actions for good business results. Tracing this planning is essential to conquer your space in the market.

Read also:  Internal audit: reasons for your company to put into practice

 

 

Read also:  5 golden reasons for you to become a business consultant

 

 

Read also:  ERP Business Management Software - Accounting System

 

 

Read also:  Advantages of having an accounting integrated with the ERP system

 

However, with the absence of the business plan, a company can close before it even starts. But, so that it doesn't happen to you, here's how to assemble yours:

 Market analysis

 As a good entrepreneur, you can't count on just luck to start your business. It is essential to know in detail the preferences of your target audience and the strategies that competitors use.

 The best way to obtain this information is to do market research, analyzing the products and services that competitors offer, in order to find inspirations or ways to overcome them in their deficiencies.

 Another way to analyze the market is to research consumer preferences and behavior. It is the ideal time to understand the needs of customers and how they can serve them.

 Defining strategies

 It is good to start thinking: how will your objectives and goals be achieved? How will your company be publicized? Having an idea is easy, however, it is necessary to know how to put it into practice to achieve better results.

 Therefore, in order to define strategic planning, everything your company needs to exist must be placed at the tip of the pencil, what actions must be taken so that the competition is overcome, how to make it attractive to customers and how to consolidate itself in the market.

 Financial planning

 To calculate the costs of an initial investment, you must take into account all fixed investments, working capital, investment in operational services (equipment, labor, etc.) and income statement with the profits obtained from the services provided.

 When opening a company , the results take time to appear. But with the financial plan, you balance your billing so you don't lose out and allow you to calculate the time it will take to get a positive return.

 After knowing about the profits that will be obtained, make your annual projections and remember to be in line with the accounting standards that are required.

 How to define the best tax regime?

 Right at the beginning of your business you need to decide what is the best tax regime for paying taxes. This decision is of great importance, so it is necessary to know the systems well so that you do not end up paying additional fees to the government.

 Most of the time, entrepreneurs hire accountants to resolve this issue. But, if you know the behavior of the market well and each one of these modalities, you will be able to decide which tax regime is more appropriate when opening your company.

 Learn more about this subject: Real Profit or Presumed Profit? Which one is the best?

 How to register a trademark?

 It is obvious that you know big companies whose brands are recognized worldwide. In addition to talent and entrepreneurial spirit, these companies have a fundamental: the legal registration of their identities.

 It may seem simple to create a name for your company, but you may experience complications if you copy an existing name or have the name copied.

 To avoid these inconveniences, it is best to know how to register a trademark. Thus, you acquire exclusivity and still have greater chances of promoting yourself within your segment, since that way your company will be seen from a new corporate angle.

 Check if your brand has already been registered

 It is common for entrepreneurs to think of common and similar names and this is one of the causes for many companies to register their brands: not to be copied.

 The first step to be taken is to search for brands that already exist in the market. This research can be carried out by anyone in a practical and free way.

 Determine the brand type

 Trademarks can be nominative when they are made up of words; they can be figurative, which occurs when accompanying symbols; and they can also be mixed, where there is a mixture of words and symbols.

 Pay an upfront fee

 When starting a Business Consultant in UAE, all processes require costs, even to register a trademark.

 See the costs of this operation and remember that small companies have discounts of up to 50% in fees. It is also necessary to pay for the exclusivity of the brand, being valid for up to 10 years.

 How to get customers?

 After all the bureaucratic process, your company may open its doors, but the principal is still missing to complete your mission. It is the customers, the key part for any enterprise to succeed.

 Conquering customers, especially at the beginning of the company, is a task that requires marketing and sales strategies. With the market becoming increasingly competitive and selective, it is not worth waiting for your company to receive the visit of customers from one moment to the next.

 So, check out some tips on how to get desired customers for your company:

 Determine your target audience

 Knowing who your customers will be is essential to meet your needs. However, not all people in the world can become your customers. On the contrary.

 The more segmented your business is, the more targeted your customer base will be. You must profile your audience and research preferences, it is also worth researching how the competition serves this same target audience.

 Determine marketing strategies

 Calculate the capital available for marketing actions and make a monthly disclosure plan.

 In addition to social media, you can invest in pamphlets, advertisements in newspapers and magazines, advertisements on billboards and, mainly, in digital marketing strategies. After all, customers need to know and never forget your company.

 Prepare your team

 Your team must always be prepared to offer the best service, as soon as the first customer crosses your door.

 And the best way to obtain this preparation is to invest in constant training on the products and services that your company offers. Don't forget to also allow them to offer discounts and possible gifts, attracting the customer and earning their loyalty

 Make partnerships

 Think of strategic establishments that can contribute to the promotion of your company. These alliances offer several advantages, such as new customers contacting suppliers. After all, alone nobody gets anywhere.

 After this complete guide your company and you are prepared to face the market. Nothing better than being aware that getting here is not easy. Now, with the right information, you can start your dream and succeed in your venture!

 Financial auditing is a practice that is gaining more and more space and importance within companies. In view of today's fierce competitiveness, using effective tools for evaluating and controlling all the activities of a business , especially in the financial sector, is one of the basic requirements to guarantee its permanence in the market.

 Reducing  - and, preferably, reaching the point of eliminating - errors and fraud, controlling your finances efficiently and constantly evaluating your practices are ways of working for a company to continue to exist and gain its market share for a long time.

 This is where financial auditing helps. By systematically analyzing how organizations do their internal control, auditors become an important source of reference for managers , showing problems and critical points of a company's routines.

 In this article, we will clarify how a financial audit works and explain the steps necessary for its performance, highlighting its importance to  increase efficiency  through control and continuous process improvement. Are you interested? So, read on!

 1. What is financial auditing?

 Financial auditing is a branch of accounting that specializes in systematically and impartially checking the consistency of facts and information recorded by the financial area. To audit a company's finances is to study its financial statements and make sure they are in accordance with current accounting principles.

 It will verify the existence of problems and risks in any financial activity of the company, identifying the reason for their occurrence, the moment in which they were consummated and outlining ways to eliminate them. All of this aims to assess whether all procedures respect the legal and ethical requirements that the company must comply with.

 The financial audit therefore works as a kind of quality control - since it implements mechanisms that provide security about the financial, legal and organizational status of the company.

 2. How did it come about?

 The first historical records of audit-related activities date back to ancient times. That's right! By the year 4,500 BC there were already people concerned with checking the consistency between the records and the facts.

 Throughout antiquity, it is possible to observe examples of financial Auditors in Dubai. The Romans, for example, had an improved audit system to serve as an instrument for controlling the empire and public accounts.

 Many  family businesses  had to become professional and seek resources to keep their products and services competitive in an increasingly competitive market.

 3. What factors drove your growth?

 This movement was important to make the control of finances more transparent and professional. However, modern accounting and auditing have come a long way since the beginning of the last century.

 In addition to the development of the economy and the change in the profile of market players, many other phenomena have also given impetus to its practice.

 A good example of this was the creation of the Security and Exchange Commission in 1934 in the United States. The entity's mission is to increase the reliability of financial information and records provided by companies that trade securities on the stock exchange to safeguard investor interest and increase the transparency of operations.

 Another factor that contributed to the development of financial auditing was the implementation of Keynesian economic policies in the period that followed the 1929 crisis. The creation of a strong and interventionist state meant that companies had to undergo a series of new tax obligations. .

 The audit, therefore, became important also to ensure that the company operates within the limits imposed by the laws and regulations issued by the Government.

 In addition to bearing a greater tax burden, in order to sustain the so-called “welfare state”, companies have also undergone more intense regulation - which imposed a series of ancillary obligations, such as the issuance of  invoices  and the maintenance of financial and accounting books.

 In United Arab Emirates, financial auditing came to be seen as an essential tool for good  management , especially after the second world war - a time when the United Arab Emirates economy was gradually opening up to multinationals.

 With them came the big accounting offices, which already worked with these companies abroad and were already used to the levels of transparency practiced in the international market.

 To have an idea of ​​the importance of the topic today, suffice it to say that,  according to research , about 70% of all United Arab Emirates companies have already been victims of fraud. It is estimated that around R $ 2.2 billion are stolen by employees in commerce every year. Unfortunately, small businesses suffer the most from these numbers, which do not have a robust accounting structure.

 Both the fight against fraud, tax compliance and internal and external transparency are very important elements for the company to maintain its financial health, an essential item for its growth.

 In addition to making the investor feel more secure, facilitating fundraising for the business, audits are also important to reduce the likelihood that the company will be fined by the inspection authorities, having to bear heavy fines or even with the establishment ban.

 4. What is a financial audit for?

 The financial audit has the role of identifying the complications, facts and accounting risks that affect the company's equity so that, in this way, it can present an opinion on the efficiency and quality of the company's internal controls.

 Only by constantly monitoring all monetary values ​​related to the activities carried out in the company will it be possible to develop and apply  strategies to optimize resources  and, consequently, operational fluidity.

 The audit will therefore be responsible for monitoring all activities that involve treasury and cash flow (accounts payable and accounts receivable). The auditor assesses whether the financial sector carried out all transactions correctly, lawfully and in accordance with the company's internal rules.

 This observance, on the part of the auditor, about the financial statements and their compliance with the regulated accounting principles and requirements is fundamental so that the use and targeting of resources is carried out in a uniform and advantageous way for the company.

 5. How to perform a financial audit?

To perform a financial audit, it is necessary to follow a script that goes from the identification of the company's processes and routines to the evaluation of the results and the suggestion of improvements by the accountant.

 The step-by-step below identifies the steps of an audit and gives  tips on its applicability. Check out!

 5.1. Mapping processes

 Financial audit work should begin with mapping existing processes in the financial sector. This means listing and identifying all financial practices carried out by the company and which are the responsibility of the financial department. This includes, for example:

• cash flow management;
• payment to suppliers;
• administration of accounts payable and receivable;
• the collection of delinquent customers;
• Reconciliations and bank transfers.

The goal is to condense and lay out all of these procedures on a task map. This measure makes the flow of all financial processes clearly visible.

 5.2. Identifying risks

 With the mapping ready, the second step is to analyze each of the routines registered there. The objective is to study how the action is being carried out and to identify the existing risks.

 Therefore, a thorough analysis of each task must be carried out, looking for errors and inconsistencies that are not in accordance with the recommended by accounting standards.

 When making this identification, it is important to check the cash flow activities and ask the area manager about the level of perception he has regarding the risk of the sector's activities.

 5.3. Identifying internal controls

 After identifying the risks that exist and their possible impact on financial processes, the next step is to assess whether the company has an internal control system that can minimize them.

 In other words, here it is verified what tools are used to ensure that your daily financial activities do not present problems and flow according to the plan. There are several types of Internal Audit and control system reviews in UAE, each with its peculiarities and specific functions, such as:

• financial reports;
• contracts;
• spreadsheets;
• approvals;
• electronic authentications;
• casualties;
• reconciliations;
• revisions;
• Stamps.

 As an example, let's look at a supplier payment routine. After checking how a company pays its suppliers, we identified that one of the risks that exist in this process is that of making a double payment. The audit will ask the following questions:

 “What internal control does the company do to minimize this risk?”;

"Is it already in place?"

 In this specific case, a good internal control practice would be a payment reconciliation system followed by a cash register that demonstrates, in a clear consultation form, that the payment has already been made.

 It should be noted that all internal controls in the financial sector are focused on accounting. Also considered as internal controls are the tools that assist in the day-to-day operations of the sector, such as:

• fraud protection systems;
• default prevention;
• Routines and guarantees against theft.
• Any other measure that helps to ensure financial security.

 5.4. Testing internal controls

 Knowing what the company's internal controls are and how they work, the audit will now have the mission of testing them in practice. The purpose of this step is to check the efficiency level of these controls, finding out if they can minimize the identified risks satisfactorily.

 Based on specific techniques and procedures, the audit will put each of the controls to the test, analyzing whether the process is, in fact, being followed as expected and what is its level of security.

 If the auditor finds that internal control is not efficient or is not put into practice, he must list all the problems encountered and verify their impact - not only in the financial sector, but in the company as a whole.

 5.5. Analyzing the results

 Repeating this process in all the company's financial routines, the audit gathers the evidence and the results obtained. In positive evaluations, the auditor informs in his report that the process is effective and recommends its maintenance.

 Read also:  Internal audit: reasons for your company to put into practice

However, when verifying that a certain routine is wrong, it is the task of the audit to point out exactly where the problem is, informing how and why it is happening. At the end, the auditor concludes his work suggesting the best practices to solve it and how they should be implemented.

 What every manager should keep in mind is that the intention of a financial audit is not just to point out mistakes and culprits. Unfortunately, this is still a common thought, considering that an audit is usually only performed after failures in  financial routines  have already caused some damage.

 The audit should be valued and seen much more as a preventive action, applicable periodically and continuously within a company. Its results benefit everyone because:

• guarantee the sustainability of the business;
• improve profit margins;
• decrease the risk of errors;
• Make employees feel more secure.

6. Why is it so important to perform a financial audit?

In addition to the fact that conducting a financial audit is a vital task in improving the way a company manages its money, it also fulfills the role of preventing and combating fraud, scams and theft within an organization.

Often, small losses may seem insignificant for business, but the final sum represents  large losses  - financial and credibility - when such behavior is not reprimanded and shunned.

The financial audit will then be essential for it to be possible to identify and verify the risks of distortion that have occurred in the company.

 Read also:  Discover 6 types of audits that can help your company

In addition, the audit will allow a greater understanding of  the financial reality  and organizational effectiveness - which ensures improvements in the entity's internal control and, consequently, a solid basis for planning and executing practices that will correct the errors and deficiencies identified by the auditor financial.

All this care guarantees much more than the reduction of errors and the elimination of risks. Auditing is also a great strategic ally for any business that wants to have a more effective financial sector and, with that, grow safely and without inconvenience involving tax complications.

7. Controllership and auditing: what is the relationship?

Many people who do not know accounting closely confuse or treat the concepts of controllership  and auditing as synonyms  . The confusion is justified: after all, the two activities are very similar.

However, the two expressions represent totally different things! We can say that controllership (despite being a branch of accounting) is a little closer to the organization's management, since its performance is focused on the company's financial future.

 This is, therefore, one of the biggest differences between the two. The audit, considered in isolation, generally limits its scope of analysis to the past - that is, to sales that have already been made, to taxes that have already been collected, to payments that have already been made, etc.

 Controllership, in turn, looks forward to anticipating the challenges that the company may encounter in its path. It is worth saying, therefore, that the two activities do not cancel each other. Quite the contrary: they are complementary!

 8. Financial audit and accounting audit: what is the difference?

 In its origins, the audit was born within the financial department. However, it proved to be such an effective means of examining the company's activities and ensuring the implementation of the planning that it even gained popularity in other sectors of the organization. This is what happens, for example, with accounting auditing .

 As its name already indicates, an accounting audit aims to analyze accounting and non-financial documents. Thus, its objective is to validate the accounting balances  - which is done by comparing the entity's financial statements with its equity, economic and financial situation.

 One of the biggest advantages associated with accounting auditing is the evaluation of the company's internal controls, ensuring that the accounting records do, in fact, reflect reality and not a fiction fueled by time with errors and fraud, for example.

 Read also: Internal audit: reasons for your company to put into practice

Without reliable information at hand, it is much more difficult to run a business. Not to mention that the trend is that the pressure on managers will increase, since the  partners  or shareholders will also not feel safe with the unaudited financial statements.

 9. Internal audit and external audit: when to use one or the other?

 In general, the internal audit aims to draw conclusions and generate reports directed to the company's own management. The external audit, in turn, aims to attest the veracity of the records to third parties.

 These third parties may include investors, minority partners, the government or financial institutions - for purposes of credit approval, for example. In that case it is important to choose an impartial accounting firm to stay ahead of the process.

 Finally, we could not close the article without emphasizing the importance of controls and audits in the company's finances, since errors and fraud can be expensive - besides, of course, exposing the organization to fines and sanctions provided for by law.

 Furthermore, as we have seen, conducting a financial audit on the company is not difficult when we follow some fundamental steps! It is also worth remembering that the manager should not feel alone on this journey. Partnering with accounting firms and management consultancies can be the best way!