Companies around the world must follow a strict process in order to make sure that they are able to run their operations smoothly. So it is not just a requirement but also something that they definitely need to make sure as there are some checks on every business entity from concerned authorities. The need of audit is something which is extremely necessary as certified audit reports are needed by companies to show that they are working in a legal manner and also within the rules and regulations as described by the government, concerned authorities and legal bodies, etc.

One of the main purposes of getting an audit report is to monitor the performance of the company if it is up to a particular required standard or not. Companies operating in Dubai need the services of an audit company dubai so that all their performance in a year can be monitored and recorded so that they can get a final report in this concern. This report is then submitted usually to government officials, board of directors and shareholders before the annual general meeting of a public company, for example.

Audit and the Accounting Practice

Audit is a part of the broader accounting practice as nowadays, no balance sheet or income statement is seen as conclusive and authentic until is accompanied with an audit report from chartered accountants or accounting services in dubai offering such facilities to their customers. That’s why it is one of the best practices so that a company can make sure that it is heading in the right direction. I am sure that not all of my readers have a complete idea in this concern. There are many examples that can be helpful for you in this concern. Let me offer you one in this regard.

Suppose that there is a spinning mill which produces yarn that is supplied to different factories. What such a spinning mill need in terms of making sure that it can sustain in the market and satisfy different authorities in this concern? First of all, the working condition in one of the main aspects that any business concern needs to maintain. The workers’ condition and facilities should be of top quality as there are many ways in which can have a severe blow to the company in the long term.

Let me talk about this aspect in a bit detail now.

Audit of a Spinning Mill

The first thing a person doing the audit may look for is the condition and facilities in which workers and employees of a factory works. Usually in countries in Asia, Africa and South America are not up to the mark and auditors raise serious questions in this concern. The code of conduct that the factories, or a spinning mill, need to comply with can be really exceptional. There are many ways in which a company which is just a little hesitant to offer such facilities can face severe consequences in this concern.

There can be many reasons for which a company don’t provide top-notch facilities to their employees. First of all, as I have mentioned above, companies operating in developing nations in the three continents that I have named may not have much capital or resources to come up with all the facilities that are usually required by auditing firms. There are certain risks involved in handling heavy machinery in spinning mills and for the safety of the workers, a company need to install machines or get in place some precautionary measures that are required.

Final Word

The above example is just a tiny example of how companies these days need to work in order to make sure that they are complying with the working conditions of every audit firm. In turn, these audit firms provide them the ok-report and a positive outlook of their company. That’s why it is imperative for a company to make sure that they comply to the code of conduct and compliance with the rules and regulations of the government/audit firm to pass out the strict test.

If you need any further guidance in this concern or want to offer your valuable feedback for this blog, then please use the comments section below.

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