External Audit - Prema Consulting

What is External Audit?

An external audit is an independent review of your financial statements and key records by qualified auditors who are not part of your organisation. The objective is to provide an opinion on whether your financial statements present a true and fair view, in line with applicable accounting standards and UAE regulations. For growing businesses, a high‑quality external audit is not just a statutory requirement; it is a confidence signal to shareholders, lenders, and partners.

Our External Audit Services

Statutory Audit

Independent audit of annual financial statements in line with IFRS and local regulatory requirements.

Group Audits

Audit of holding companies and group structures, including consolidation workings and intercompany balances.

Compliance Audits

Assurance engagements tailored to specific regulator or licensing body requirements.

Special Audits

Targeted audits for lenders, investors, joint ventures, or specific contracts and covenants.

How External Audit Helps Your Business?

Builds Trust
Independent assurance strengthens confidence among shareholders, lenders, and business partners.
Enhances Controls
Audit findings highlight gaps in internal controls, helping reduce errors, fraud, and operational inefficiencies.
Supports Funding and Growth
Reliable audited financials are often required for bank facilities, investors, tenders, and expansion plans.
Improves Decision‑Making
Clear, accurate financial statements provide a stronger base for strategy, budgeting, and performance management.

Why you should Conduct an External Audit?

Regular external audits give your stakeholders confidence that your numbers are accurate and your business is well‑managed. For companies in the UAE, they are also a practical way to stay ahead of compliance requirements and spot issues before they become serious problems. At Prema Consulting, an external audit is not just a checkbox exercise; it is a chance to strengthen your finances and build long‑term trust.

Stay compliant in the UAE

An external audit helps confirm that your books and reports follow UAE company, tax, and regulatory requirements. It flags any non‑compliance early and gives you clear recommendations, so you can avoid fines, licence issues, or banking delays.

Build Financial Transparency

Independent auditors review your financial statements and key records to confirm they are fair, accurate, and consistent. This level of transparency builds trust with investors, shareholders, lenders, and regulators, and makes it easier to raise funds.

Improve Performance

An external audit highlights gaps in your accounting processes, controls, and reporting. Fixing these issues can reduce errors and fraud risk, cut unnecessary costs, and strengthen your financial management—supporting long‑term growth.

External Audit Procedure

Initial Discussion

Understand your business, reporting deadlines, and regulatory requirements.
Agree on scope, timeline, and key contacts.

Engagement and Planning

Issue an engagement letter outlining responsibilities and deliverables.
Perform risk assessment and design an audit plan focused on material areas.

Information Request

Share a checklist of required documents (trial balance, ledgers, bank statements, contracts, etc.).
Coordinate data collection with your finance team to minimise disruption.

Fieldwork and Testing

Perform detailed testing on revenues, expenses, assets, liabilities, and disclosures.
Review internal controls, supporting documents, and key estimates or judgements.

Queries and Discussions

Discuss audit findings, adjustments, and open points with management.
Resolve questions collaboratively and agree on any corrections needed.

Draft Reports

Prepare the draft audited financial statements and audit report.
Provide a management letter highlighting control gaps and improvement ideas.

Finalisation and Sign‑off

Incorporate management feedback, finalise numbers, and issue the signed audit report.
Support you with any follow‑up clarifications for banks, investors, or regulators.

FAQs

When is an external audit required?

External audits are commonly required by regulators, lenders, shareholders, or group policies, and are often mandatory once a company reaches certain size or legal thresholds.

How long does an external audit usually take?

For most SMEs, the audit fieldwork can be completed in a few days to a couple of weeks, depending on record quality and complexity, followed by final reporting once all queries are resolved.

What documents do we need to prepare?

Typically: trial balance, general ledger, supporting vouchers, bank statements and reconciliations, fixed asset register, contracts, loan agreements, and key management representations.

Will an external audit detect all fraud?

The primary objective is to provide reasonable assurance on the financial statements, not to detect every instance of fraud, but a robust audit can highlight control weaknesses and unusual items that may indicate issues.

How is external audit different from internal audit?

External audit focuses on giving an opinion on the financial statements for external stakeholders, while internal audit focuses on ongoing risk, controls, and process improvements for management.

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