How does Auditing help to avoid Financial Crimes?

2020 has been an unstable year in terms of business and finance of any business, not only because of the COVID pandemic but also due to huge global financial crimes. Financial or Economic crime refers to any non-violent activity that leads to financial loss. It also includes other illegal activities like money laundering and tax evasion. These increased crime rates alarmed the need to audit for companies in order to prevent financial statement fraud. Such crimes take place in the form of financial statement fraud, asset misappropriation, and corruption.

Although, the concept of financial crime is not new, however with technological advancement the opportunities for crime have increased. Financial system abuse has negative consequences on a country’s macroeconomic performance, and may also have a negative cross border.

 The following are the various types of Financial Crimes

  • Corruption
  • Tax Evasion
  • Capital Flight
  • Smuggling
  • Bank Fraud
  • Insurance Fraud
  • Organized Crime
  • Terrorism Financing
  • Pyramid Schemes
  • Financial Statement Fraud

It is advised by the Auditing Company in Dubai, to the companies to perform audits so that the company can protect itself from fraud and other factors. Further, banks and government agencies look for audit reports as proof of the company’s credibility and transparency.

Fraud Investigation is something unpleasant situation for business owners. In general, the involvement in fraudulent activities in any business is done by the Accountants in Dubai or a person who has a close understanding about the finance. Elevate as a vintage Audit Company in Dubai has performed several Fraud investigations and identified the involved person.

These are the following reasons why the company should hire an auditor – 

  • Audits add value to the business – The annual audit in UAE, helps the business to gain a competitive edge by boosting controls in the organization. When the proper auditing of a firm is done then it attracts external stakeholders and investors.
  • Auditing brings investment – When the auditing is done by an approved auditor in UAE, the credibility of the company increase and the investors look interested. The government and investors value the audit report. Regular auditing by the company can increase the business rating of the company apart from attracting more consumers.
  • The audit helps the company to rectify errors – Business proprietors use an outside audit to discover the mistakes of their accounting manner. Errors inherent withinside the accounting manner might also additionally save you the marketers from making higher choices concerning the agency’s operations. Errors additionally restrict the control from reviewing the historic economic facts and find out developments. Discovering developments is important to the strolling of any enterprise because it permits the marketers to gauge destiny manufacturing output or expect income for the following months. Auditors in Dubai, additionally guarantee that the accounting manner in the company is according to customer requirements together with IFRS.
  •  Determines the effectiveness of Internal Controls – Availing outside audit offerings in Dubai facilitates the corporations to study the inner controls of the enterprise. Such an evaluation will permit the control to decide if the right approval and authority assessments are there. Since the auditors are independent, they are able to offer an independent grievance of the inner techniques of the company. They can permit the enterprise proprietors to pick out the regions of operation that could gain from extra efficiency. An evaluation of inner controls lets in the control to find out regions that want to be streamlined and mitigate risks so that financial fraud crimes can be decreased.
  • Enhances Legal Compliances – While working in the UAE, an enterprise has to attend to a fixed of prison compliance necessities inclusive of Anti-Money Laundering (AML), Value Added Tax (VAT), Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO), etc. By availing of the offerings from accountants and auditors in Dubai, the enterprise proprietors can verify whether or not they may be complying with the compliance necessities.
  • At a very higher level, big business houses open their head office in Dubai just not to pay TAX in the countries like India, UK, USA & Australia. So the Economic Substance Regulation (ESR) concept was introduced to have close look at the companies who are shifting profit.

Apart from assisting the groups to meet any mandatory obligations, Elevate Accounting and audit has a group of accountants and auditors in Dubai who makes use of a proactive manner to reduce the hazard and decorate the enterprise strategy. Elevate adopts a pragmatic, hands-on technique for the audit, which allows the marketers to enhance enterprise performance. we’ve got relatively certified Chartered Accountants in Dubai who assist enterprise proprietors obtain their enterprise desires through tough assumptions and resolving problems that would be protecting their enterprise back.