Auditing in Industries

Auditing Firm Auditing Firms in Dubai

Identifying the risks of material misstatement, non-conformance and non-conformance in a specific industry should be approached in the same way as any other audit – by obtaining a reasonable understanding of the business and its environment. Assuming staff have the required competencies as described above, this should not be a problem.

Audit firms may have additional resources to support audit team members assigned to specific industry clients. There may be internal informational notices or technical guidance on how accounting standards should be applied in the industry. For example, when auditing clients in the banking sector, the audit firm may provide guidance on the specific application of IFRS® standards to the class of financial instruments normally held by banks. The assurance staff can then refer to this guide in conducting their assurance engagements, particularly when identifying risks of material misstatement.

It is also important to remember that while industry-specific balances and transactions may carry the risk of material inaccuracy, "ordinary" balances and transactions also need to be considered. For example, when auditing a bank, many risks unrelated to bank-specific transactions and balances need to be considered, such as depreciation of real estate, recognition of provisions, and impairment of goodwill. This type of "normal" risk should not be overlooked simply because the customer operates in a specialized industry.

An Auditing firm like Spicer Pegler can help you in many ways by providing you with the best facilities and services. We have a caliber and experienced team of accountants and advanced technology to better manage and support your business finances.