Buy custom Rights and Obligations of Auditors essay
Auditing involves accounting reviews and statement preparation. This is mostly practiced in companies and governments by professional auditors. For individuals to be accepted as auditors within any corporation or government, they should be qualified accountants certified by the relevant accounting body in the country, while others may require a certification from the world’s accounting body. This is critical due to the importance of accounting and responsibility of assets and liabilities of any given government or firm. Auditing reveals the state’s current financial status, and auditors are responsible for the usage and spending of every resource by the government within a specified period of time. In the United Arab Emirates, financial statements auditing services are considered relevant just like in any other country because the government needs to know exactly where it is standing financially to plan for the budget and explain any existing debt in time. Therefore, the country has certified auditors in place, who are obligated with various duties within the country, according to the auditing Law 22 of the year 1995. The purpose of this paper is to give a detailed review and explanation of the auditors’ rights and obligations in the United Arab Emirates according to the stated act of the constitution based on various articles.
Registered auditors have different responsibilities and duties, depending on the place of work. In the UAE, auditors have the obligation to audit and control all of the government’s accounts involved in all of the companies associated with the state, including all the public and private sectors and establishments. In doing this, the government has the full control of the way it spends resources to particular bodies as it can see how the money is used. Auditors have specific rights within the auditing body, including the right to audit accounts and provide certifications of the existing balances of al the clients to the government through various agencies and sectors in the country.
According to the auditing Law 22 of the year 1995, auditors have the duty of taking into account all the conditions provided by the law during their practices in the country. An auditor is also required to have been registered in the Roster of Practicing Auditing and to have specific experiences in the same profession, having spent not less than five years in an auditing office or balancing accounts in various organizations.
The act provides that auditors are not under the permission to participate in any trade or other action or duties that breach the code of ethics of their profession. They are also required not to engage in auditing the accounts of previous bodies they worked with in the past, until a period of two years out of the body has passed. Auditors in the UAE are not permitted to obtain any of their work through advertisements or any ways considered to breach the accounting profession.
The act of law regulating the rights and obligations of auditors in the UAE restricts them from mixing their work with any other activities, including taking part in the formation and establishing of a company as a partner, shareholding, or being a member of the board. An auditor is also restricted from becoming a debtor or a creditor of any company, and they cannot be partners with any of the founders or any of the relatives. The act does not allow them to buy or sell shares in the companies in which they work as employees. This act has enabled auditors to avoid various issues from different companies that are financially related.
According to the act, before auditors are accepted as registered auditors in the UAE, they are supposed to provide, in printed form, their official names or the names of the compaanies they work with, along with the registration number provided by the Roster of Auditing Practicing in the region. The certificates related to the auditing profession are also required and should be signed by individuals themselves. Before serving in their positions, they are also needed to obtain the licenses required to undertake auditing. In doing this, the act has enabled a proper and accurate selection of auditors in the country.
Auditors are required to use their personal names in their address in offices for easy reference by the government. If auditors work for particular firms, they are obliged to have an address that includes the names of some of the partners within the company and the address of the firm that they work with.
The auditing law provides that auditors are responsible for their actions and the value of the available information indicated in their reports. In case of any damages that may affect their clients in any way, auditors are responsible for them in case of their negligence while in service to the public. In a situation where the damage incurred is a result of the actions of not just auditors, they are supposed to share the loss unless it is a fault of a single adviser among them. This has enabled auditors all over the United Arab Emirate to be responsible and careful in their operations.
Auditors in the UAE are required by the act of law to reserve and keep the data and files that are related to the clients they have worked with for not less than five years, counting from the last financial year that the auditor audited the accounts of the client. The same accountant should not reuse the same registers and files for the period referred above. This enables the auditing bodies in the UAE to stick within their obliged duties as whatever they do is in the broad light and cannot deviate from the provided conditions by the act.
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