An Insight into Internal & External Audit

Audit is basically a process of checking financial records of an establishment, in order to give an opinion on the financial statement. It can be categorized into two groups namely Internal Audit and External Audit. Even though internal audit is an optional thing, business owners still conduct it to review the activities of the organization and get recommendations for any improvement. On the other hand, external audit is a compulsory thing where a third party performs the process of audit and gives opinion on the financial statements of the company.

Listed below are some of the differences between internal and external audit:

• The internal audit is conducted by employees while the external audit is conducted by third party.
• The internal audit provides a customized report on the jeopardies and purposes of the company. It focuses on how to make improvements in the business. On the other hand, the report provided by external audit team is done on the Auditing Standards format. It focuses on providing a factual and impartial view and acts in accordance with legal requirements.  
• In case of internal audit, the report is provided to the managers of the company who are required to make the requisite changes accordingly. However, the external audit services are provided to the shareholders or the trustees of the company. 
• The internal audit is usually a continuous process; while on the other hand, the external audit is done once in a year. The external audit is usually performed on a yearly basis to provide the annual statutory audit of the financial accounts. This audit is intended to show whether the accounts are correct and where the company sits financially. 

After knowing about the differences, it can be said that internal and external audit are not conflicting to each other but they complement each other. External auditor at times can take help of the internal auditor if required. In fact the large scale companies ensure that both internal as well as external audits are conducted to keep their organization at the top.

Since the external Audit services are mandatory in UAE, it is essential that one chooses a team that shows the following skills:

• Provides insightful and on time reports
• Displays suitable ethics, values and attitudes
• Interacts with relevant stakeholders in the right way 
• Uses hard audit procedures and quality control processes which comply with regulation, law, and applicable standards
• Has adequate skills, experience, and knowledge 

Apart from all these, always ensure that you work with auditors who are highly recognized, as a less known auditor may charge you less but at the end will not perform the best work. Also ensure that the auditor is independent and is not associated with the company.

To conclude, it can be said that it is vital for any business organization to make sure that they hire an auditor who can further ensure accuracy of the company’s transactions and question any components which may pose a risk to the financial and personal reputation of the company.

Why Should You Consider Expanding Your Company Offshore?

Setting up an offshore company brings with itself loads of benefits and advantages for its owners, which otherwise may not be possible. The notion that minimized taxes and increasing confidentiality are the only positive reasons for setting up an offshore company is far from the truth. The growth of globalization has made setting up offshore branches even more advantageous and much easier.

It’s true that the benefit you attain from an offshore set-up depends on many external factors like the jurisdiction of the company and the laws followed by the country where the business is being set up. For example, if there is an offshore company formation in Dubai UAE, the laws and jurisdiction should be taken into consideration.

With that said, there are plenty of reasons for a company to go offshore:-

•    Asset Protection

If your business has a huge sum of money than setting up an offshore company can help in protecting it from situations like settlements and lawsuits.

•    Tax minimization

One of the primal reasons for incorporating an offshore business is that it helps in legally minimizing the tax obligations.

•    Anonymity

It offers a high level of confidentiality to the owners of the company. Most offshore jurisdictions do not publish the information of the company owners whereas the publication of financial data from the owners is not even required by many.

•    Easy to report

Unlike major judiciary systems or many onshore companies, the reporting requirements are far more limited and are much simpler to handle as a result.

•    Lower cost of operations

Based on the type of your business, where you are from and where you are willing to set up your offshore company, the cost of operations will be lower.

For individuals or companies, the formation of an offshore company doesn’t need to be complicated as it can provide with many productive benefits for the business. The above reasons prove how your companies can reap the benefits by going offshore.

Importance of Hiring Consultancy Services for Setting up a Branch in UAE

Entrepreneurs who want to open an offshore company or an international branch, of their existing firms, need to get themselves acquainted, with the company laws, of that particular country or region. Say for instance you want to open a branch of your office in an industrial zone in the United Arab Emirates (UAE). Although, the industrial zones provide ample facilities to entrepreneurs, yet it is essential that you hire the services of a business consultancy firm, which will help you set up your company’s branch with ease. Primarily, the business consultancy firm will interface between your firm and the local authorities. All legal and business activities that need to be carried out will be done on your behalf, by the business consultancy firm that you hire. Some of the essential services that you can expect from a business consultancy firm, which aids companies to set up offices in UAE has been discussed below.

Services Provided by a Business Consultancy Firm

There are many leading business consultancy firms that help in company registration in UAE. In order to set up an offshore branch in the UAE, you will first need to get your company registered. However, the registration process can be quite tedious and will require you to submit numerous documents. However, if you hire the services of a business consultancy firm, then procuring the requisite documents and ensuring that the registration process is completed will be done by the consultancy firm. Some of the other services provided by business consultancy firms, which specialize in helping entrepreneurs to set up offices in the UAE, are as follows:

· Liaising with local authorities: The consultancy will liaise with local authorities to help you secure property on lease. This is essential because the land laws of all countries are specific and hence, in-depth knowledge of the land laws of UAE are essential before you can lease a commercial property to set up the office. The consultancy firm, whose services you have hired will ensure that meet the requirements of the country’s land laws and lease commercial property, in an industrial zone in UAE with ease.  The consultancy firm will also help you open accounts with local as well as international banks in the region.

· Drafting relevant legal documents: The consultancy firm will draft all the necessary legal documents, to make the process of setting up an offshore company easier.  Without the services of a consultancy firm, you will find it difficult to procure the necessary documents and your objective of setting up an offshore company can get delayed.

Hence, it is essential to procure the services of a consultancy firm, to make the process of setting up an office in UAE simpler. Some companies also provide additional services like helping entrepreneurs identify suitable free zones to set up an offshore company. In other words, these consultancy firms provide holistic support to help a business organization set up a branch or even an offshore company in a free zone in UAE.

Establish your Business in UAE Free Zone and Gain Huge Profits

United Arab Emirates (UAE) has been reforming its policies and attracting foreign investors to establish or expand their business in the country. The tax-free market is another factor that makes UAE a preferable destination to setup your business.

If you are ignorant about the fact that you can establish your company in Abu Dhabi without any involvement from a local partner, then let me tell you it is actually possible. Free Zone company formation in Abu Dhabi is one of the most opted forms of companies.

Free Zone Company
 
Before setting up your business here, you must first understand what the term “free zone” signifies. A free zone is basically a trade zone that is exempted from all the local government taxes. Each free zone is managed by a specific Independent Free Zone Authority which is accountable for issuing employee visa, business permits and licenses and regulating the business requirements. Also, each zone has its own sets of rules and regulations.

Free zone company formation will benefit you in the following ways:

1. The foreign investor will be the sole owner of the business. There is no need for the involvement of any local partner in the business.

2. Free zone company formation UAE means 100% repatriation of investments and profits. The foreign investor is free from customs duties, personal or corporate income taxes as well as import/export taxes.

3. Being the business owner, foreign investors can have access to multi-currency bank accounts. Moreover, this zone follows generous policies for bank account transactions.

For free zone company setup, foreign investors can seek help from one of the leading accounting and advisory organizations in UAE like HLB Hamt. This firm helps investors with strategic inputs and business plans. Besides, it helps in getting clearances and approvals from various departments of the Free Zone and also aids in the documentation process.