Audit Firm Ethics and Professional Standards in the UAE

Sumesh Krishna, Partner

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HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

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    In the fast-paced business environment of the United Arab Emirates (UAE), where economic growth and development are on the rise, maintaining the highest standards of ethics and professionalism is paramount. Audit firms in the UAE play a crucial role in ensuring financial transparency and accountability, and their adherence to ethical principles and professional standards is essential for building trust in the financial markets.

    For the efficient management of business operations in the UAE, adhering to statutory regulations is crucial, necessitating the implementation of reliable audit and governance systems. Hence, the role of premier audit firms and providers of corporate governance services in the UAE is pivotal in guaranteeing business integrity and compliance. This blog post delves into the critical aspects of audit firm ethics and professional audit standards in the UAE.

    How do audit firms guarantee compliance?

    • Audit firms operating in the UAE ensure their adherence to international standards on auditing and related compliances in their client engagements.
    • The primary objective of an audit firm is to evaluate the precision and openness of financial statements meticulously.
    • Should any inconsistencies be identified, they must mention that in their reports and separately report them to the relevant authorities promptly If required.
    • Audit firms function as ethical guardians in fulfilling this role, guaranteeing financial information’s candid and equitable presentation.
    • Auditors are mandated to avoid any influences from dishonest practices, including bribery, extortion, gambling, and other forms of corruption, in line with the International Code of Ethics for Professional Accountants issued by IESBA.
    • Independence and Objectivity
      Maintaining auditor independence and objectivity stands as a fundamental principle of auditing. Various regulatory bodies and professional organizations, such as the UAE Auditors Association and the Securities and Commodities Authority, have been established for this specific purpose. These entities have implemented meticulous protocols to ensure auditors sustain their independence. This independence is critical in preventing conflicts of interest and upholding ethical standards throughout the auditing process.
    • Regulatory Framework
      The UAE has implemented a comprehensive regulatory framework that mandates businesses, particularly those publicly listed, to strictly adhere to ethical standards in profit-making and other corporate activities. Auditors play a pivotal role in enforcing these regulations, providing essential checks and balances on firms’ operations.
    • Transparency and Disclosure
      In the corporate landscape of the UAE, leadership principles underscore the significance of transparency and disclosure. Auditors are central to evaluating the sufficiency of business-related disclosures in both monthly and annual financial reports. Their role ensures that businesses furnish stakeholders with precise and comprehensive information, fostering trust and accountability within the business ecosystem.
    • Risk Evaluation and Mitigation
      In the realm of ethical business practices, identifying and reducing risks related to fraud, corruption, and unethical conduct are paramount. This also involves establishing accountability measures for wrongdoers and appointing credible individuals to key positions. Consequently, auditors play a crucial role in helping companies identify vulnerabilities through risk assessment processes and providing recommendations for mitigating these risks. This proactive approach is essential for preserving the ethical integrity of businesses.
    • Protection for Ethical Whistleblowers
      A robust corporate governance framework includes mechanisms that enable employees and stakeholders to report unethical behaviour without fearing repercussions such as job loss or salary reductions. Auditors contribute to these mechanisms by reviewing an organization’s policies for protecting informers, ensuring their strength and effectiveness.
    • Ethical Standards in Auditing
      Professional auditing standards, both on an international and local level, underscore the importance of ethical behaviour. Auditors in the UAE must adhere to these standards, which encompass principles such as integrity, objectivity, confidentiality, professional competence, and due care. Compliance with these standards serves to fortify ethical auditing practices.
    • Board of Directors and Governance Committees
      The impact of the board of directors and governance committees is substantial in guaranteeing ethical business practices. Auditors frequently engage with these entities to offer insights on financial matters and evaluate the effectiveness of governance structures. The reports and recommendations they provide contribute significantly to the ethical oversight of businesses.
    • Exemplary Leadership
      Auditors and governance bodies are crucial in endorsing ethical leadership within organizations. By meticulously examining the conduct of corporate leadership and assessing a company’s ethical culture, they can pinpoint areas that necessitate enhancement and offer guidance to senior management.
    • Continuous Enhancement
      In the constantly evolving business landscape of the UAE, auditors and governance mechanisms must adapt to emerging challenges and risks. They must consistently assess their practices and propose improvements, ensuring that ethical standards remain aligned with the dynamic nature of business environments.

    Seek Expert Guidance and Assistance from HLB HAMT!

    Ensuring thorough compliance with audit and corporate governance standards in UAE businesses is frequently a multifaceted undertaking, requiring collaboration among auditors, regulatory bodies, corporate governance frameworks, and senior management’s dedication. Consequently, leading audit firms and corporate governance service providers in the UAE hold substantial significance in upholding business integrity and compliance.

    HLB HAMT, as a prominent audit and advisory firm, plays a crucial role in providing valuable assistance with audit standards and guidance. Our dedicated team of professionals is committed to upholding the highest standards of accuracy, transparency, and ethical conduct in financial reporting.

    For any audit-related queries or assistance, call our experts at +971 4 327 7775 or email audit @hlbhamt.com to schedule a meeting.

     

     

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    Varun R Chandra
    Varun R Chandra
    07:38 25 Apr 21
    HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.
    Giuseppe Assi
    Giuseppe Assi
    06:20 31 Jan 21
    I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more
    Mohamed Sheriff
    Mohamed Sheriff
    16:16 28 Jun 20
    Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more
    218141 JOSEPH THOMAS
    218141 JOSEPH THOMAS
    16:20 23 Jun 20
    Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more
    PMI
    PMI
    07:14 23 Jun 20
    In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more
    RAVI CHOKSI
    RAVI CHOKSI
    08:28 21 Jun 20
    Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more
    Maharajan Subramaniam
    Maharajan Subramaniam
    18:17 06 Jun 20
    High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more
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    Mohammed L
    08:07 05 Jun 20
    We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more
    ROY ROSHAN VIVIAN
    ROY ROSHAN VIVIAN
    06:32 04 Jun 20
    Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more
    Basil Daniells
    Basil Daniells
    05:55 03 Jun 20
    I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more
    Amar Kashyap
    Amar Kashyap
    19:28 02 Jun 20
    Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more
    Radz de Jesus
    Radz de Jesus
    16:03 02 Jun 20
    We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more
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