Auditing is one of the essential parts of business operations. Irrespective of the size of the organization, conducting an audit on a yearly basis can help them improve their functionality significantly. Even the small business organizations in competitive markets like the UAE ensure to increase their profitability by conducting the audit.
The audit process boosts the internal controls, helps identify the fraudulent activities that limit the growth and prosperity of the organization. Sometimes, people closely associated with some business organization do not want it to flourish, so they deliberately cause loss. On top of all this, they spread rumors and myths to stop the audit process.
Scroll down this article to learn about all the auditing myths you should not lend an ear to in order to boost transparency and smooth the flow of your business operations.
Top 8 Myths about Auditing You Should Not Believe
The auditing process highlights the poor practices that hurt the business operations and cause loss to the organization. A transparent audit can boost the growth of any business, toughening the competition for other organizations in the market. However, the audit myth makes the organizations reluctant to conduct the audit and make them bear the loss.
Here are the top myths about auditing you should not believe at all.
Fewer audits are better for the organization.
The first groundless myth about an audit is that fewer audits are better for the organization. During the audit process, the organizations have to share all their internal and confident information with the auditors. Sharing financial secrets make them believe that fewer audits are better to control information sharing.
However, it is not true. You can trust the experts with all the information. Therefore, business organizations acquire the service of trustworthy and top audit firms in Dubai to ensure it is conducted by skilled professionals who do not leak out confidential business information.
Auditors are out there to get you.
Companies believe that auditors are out there to get them. However, it is only a myth far from reality. It is the job requirement of the auditors to highlight the errors and mistakes in the financial statement and process of the organizations. Auditors are not out there to get you, but help you identify and rectify your mistakes, limiting your profits.
The audit process will be totally automated.
Most organizations believe that technology is taking over the audit process. They think that they do not need the help and support of skilled auditors, as everything is automated now. This is not true. Although automation has helped the auditors a lot in calculations and other related matters, it cannot replace the skilled and professional workforce.
Internal control and risk assessment are the only responsibilities of auditors.
Most organizations believe that internal control and risk assessment are the only responsibilities of the auditors. However, it is not true. The responsibilities of the auditors include the two points but are not limited to only these. It also includes assessing the misstatements, financial statements, and ensuring compliance with standard practices.
Internal accountants are the auditors.
Another widely believed myth is that internal accountants are the auditors. This statement holds no truth, as accountants and auditors have their distinctive job descriptions. Both of the professional positions deal with finances, but their work is not the same. Accountants prepare the financial statements, while the auditors examine them to uncover mistakes and frauds.
Internal auditors and external auditors are the same.
Another baseless myth is that the internal auditors and external auditors are the same. They are not the same, although their duties might seem similar. The internal auditors are the employees of the organization, but the external auditors are assigned by the authorities to check the transparency of the business operations. Internal auditors come under the legislation of a company, but external auditors do not.
Auditors only need to detect fraud.
Business organizations often believe the myth that auditors only need to detect fraudulent activities of the company. However, it is just a limited part of their job responsibility. Auditors also assess the risk and devise strategies to mitigate it. Moreover, they also share the strategies to boost internal control to strengthen the operations of the business organization.
The audit process should follow a fixed checklist.
Lastly, most organizations believe that the audit process should follow a fixed checklist. However, it is far from reality. The auditors do follow a checklist but do not strictly stick to it. They can optimize it according to the situation. You can hire BensAuditor the best accounting and audit firm in Dubai to ensure a smooth and transparent audit for your company, without having to worry about any fixed or unfixed checklist.
Do not believe myths and conduct an audit of your organization!
An audit can highlight some deeply buried errors in your business operations that might be limiting success. Do not add to your loss by believing the myths. Consult the experts and conduct an audit of your business organizations to ensure transparency that will lead to future growth and development.