FREQUENTLY ASKED QUESTIONS
We work with small local business through to large corporates, groups and subsidiaries of global enterprises. Here are the most frequently asked questions about Auditing.
An audit is an examination of relevant evidence that supports the numbers and disclosures in financial statements. The auditor will also assess the significant judgements and estimates made by the directors of the company in preparing those financial statements. The auditing framework that auditors use are the International Standards on Auditing and in order to carry out this work the auditor must be a member of any appropriate regulatory body such as the ACCA.
As the legislation has changed to bring the audit of companies in line with company size thresholds the regulations are easier to apply, but we recommend that directors review their audit requirements with a registered Independent Auditor.
When most people think of auditing the first thing that comes to mind is financial auditing. While this is an important aspect of auditing, it is only one small facet. The Institute of Internal Auditors defines internal auditing as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations”. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
External audit focuses on an organisation’s financial statements and considers, for example:
- the risk of material misstatements within the financial statements;
- the appropriateness and reasonableness of accounting policies and estimates used; and
- evaluation of the presentation, structure and content of the financial reports.
The length of an audit is dependent on the scale, nature and complexity of the systems, processes and controls in place. An audit can vary in length from a week or so through to a few months and involves planning, fieldwork, and reporting stages.
There are key steps in the audit process and each stage requires slightly different input. We might request information in the lead up to meeting with you to help us better understand your risks and policies. Following on from this, we might need to meet with you for a discussion on the key processes and identification of controls. We may ask you for some further information or details supporting the current procedures or to support the transactions we are testing. We will also meet with you to discuss or explain findings and recommendations from the audit prior to issuing any report.
The Oman tax authorities have recently released ‘VAT Registration Guide (Transitional Period)', that explains the registration requirements for businesses and individuals. It covers different aspects such as liability to register for VAT and the registration requirements in the period before the VAT law is effective (i.e., the Transition period).
The guide has clarified that the below-mentioned steps should be followed in case any business/individual wants to register for VAT-
- Step 1: Determine whether a person must register for VAT.
- Step 2: Determine the components of annual supplies for the purpose of VAT registration.
- Step 3: Compute or estimate the value of supplies for relevant periods as explained in the guide.
- Step 4: Registration timelines to be determined based on annual supplies.
- Step 5: Submission of registration application as per procedures outlined.
Once the VAT registration certificate is obtained, the following actions would be required:-