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Statutory Audit

Litrix provides expert assistance with your statutory audit needs.

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Statutory Audit

A statutory audit is a legally required evaluation of a company’s financial statements and records, aimed at ensuring their accuracy and fair representation. This type of audit, commonly referred to as an external audit in many countries, plays a crucial role in maintaining transparency and trust in financial reporting.

Litrix specializes in conducting these statutory audits through its dedicated auditing division. Our team is committed to thoroughly examining your financial statements to ensure compliance with relevant regulations and standards. We provide a detailed assessment that helps identify any discrepancies or areas for improvement, ultimately enhancing the reliability of your financial information.

Moreover, Litrix is recognized and listed with numerous free zones, banks, and financial institutions across the United Arab Emirates. This affiliation not only underscores our credibility in the industry but also enables us to deliver tailored audit solutions that meet the unique needs of our clients.

Common Methods Used by Auditors

Posting Checking

Reviewing the accuracy of recorded transactions.

Testing Management Controls

Evaluating the existence and effectiveness of management controls designed to prevent misstatements in financial statements.

Casting Checking

Verifying the mathematical accuracy of totals and subtotals in financial records.

Physical Examination and Count

Conducting physical inspections and counts of assets.

Confirmation

Obtaining direct confirmation from third parties regarding account balances or transactions.

Inquiry

Engaging in discussions with management and staff to gather relevant information.

Observation

Observing processes and controls in action to assess their effectiveness.

Year-End Scrutiny

Performing detailed reviews of year-end financial data.

Bank Reconciliation

Comparing and reconciling bank statements with the company’s records.

Statutory Audit Process at Litrix

At Litrix, we conduct our audits in accordance with International Standards on Auditing (ISA). Our audit process is designed to ensure that we comply with ethical requirements while planning and executing the audit to obtain reasonable assurance that the financial statements are free from material misstatements. Here are the key elements of our audit process:

  • Compliance with Standards: We adhere to the International Standards on Auditing, which guide our ethical obligations and audit procedures.
  • Audit Evidence Collection: We perform a variety of procedures to gather audit evidence regarding the amounts and disclosures in the financial statements. The specific procedures we select depend on our professional judgment and our assessment of the risks of material misstatement, whether due to fraud or error.
  • Risk Assessment: In assessing risks, we consider internal controls relevant to the entity’s preparation and fair presentation of financial statements. This helps us design appropriate audit procedures, although our evaluation is not aimed at expressing an opinion on the effectiveness of internal controls.
  • Evaluation of Accounting Policies: Our audit includes a thorough evaluation of the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by management. We also assess the overall presentation of the financial statements.
  • Limitations of an Audit: It’s important to note that an audit does not provide absolute assurance. Instead, it aims to reduce the risk of material misstatements in financial statements through sampling rather than testing every transaction and balance. A misstatement is defined in ISA 450 as an error, an omitted disclosure, or an inappropriate accounting policy. "Material" refers to errors or omissions that could influence a user's decision.

FAQS

What is a statutory audit?

A statutory audit is a legally required examination of a company’s financial statements and records to ensure their accuracy and compliance with relevant regulations.

What standards does Litrix follow for audits?

Litrix conducts audits in accordance with International Standards on Auditing (ISA), ensuring compliance with ethical requirements and effective audit procedures.

How does Litrix assess risks during the audit?

We assess risks by evaluating internal controls relevant to the preparation of financial statements and identifying potential areas for material misstatement, whether due to fraud or error.

What types of evidence does Litrix gather during an audit?

We perform various procedures to obtain audit evidence about the amounts and disclosures in the financial statements, tailoring our approach based on our risk assessments.

Does an audit provide absolute assurance?

No, an audit does not provide absolute assurance. It aims to reduce the risk of material misstatements through sampling, rather than testing every transaction and balance.

How does Litrix evaluate accounting policies?

Our audit process includes assessing the appropriateness of the accounting policies used and the reasonableness of management’s accounting estimates, along with the overall presentation of the financial statements.

OUR AUDIT SERVICES INCLUDE THE FOLLOWINGS:

External Audit
Due Diligence
Internal Audit
Recovery audit
Forensic Audit
ADGM Approved Auditors
DAFZA Approved Auditors
Business Valuation Assurance
DSO Approved Auditors
DIFC Approved Auditors
Audit and Assurance
Operational Audit
Stock Audit

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To date we are providing Accounting Services for more than 250 clients
across the UAE in Trading, Construction, Real estate, Healthcare,
Logistics and other services.
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