The Roles and Responsibilities of an External Auditor in Bahrain

The Roles & Responsibilities of External Auditor in Bahrain The current business scenario consists of a tougher regulatory climate which somehow elevating the companies to the threshold of financial setback resulting in them operating under losses or below the imagined profit. This is where the role of external auditor in Bahrain proves its worth to an organization as they help in validating the finances of the company.

Externally audited financial statements are being considered as an important document by investors to extend credit or funds for your business. Any failure to detect material misstatements reflects the poor reputation of the auditor and the firm. Therefore, many accounting bodies release auditing standards and expectations from time to time to define the role and responsibilities of external auditors.

Some of their roles and responsibilities are as follows:

1. Give Opinion on Financial Statements It is the responsibility of External auditor to give reasonable assurance about the accuracy of financial statements, these are free from any material misstatements and prepared according to an accounting framework.

External auditors are there to offer the recommendations only basis on the testing of enough facts to give reasonable assurance. They work independently and look at company records and operations to make sure the accuracy of financial statements.

2. Ensures Regulatory Compliance External auditors help in determining the compliance level of your business as per the applicable rules. The external auditor works without fear of repercussions and can easily redirect the behavior of your company. They help your business to get back on track by tracing smaller problems before they become serious.

3. Provide Credibility to business Financial statements are the mirror of the company and become more credible after the evaluation and approval of external auditors. The accuracy report by external auditor helps in providing credibility to the business. Credibility is very important for small businesses during their starting years to build a positive reputation.

4. Analysis of the company's Internal Processes External auditor can effectively see the company's internal operations from the outside and spot out the areas where the company is wasting the funds and time.

External auditor closely analyzes the accounting practices and general operations of the company and recommends the behavior to cut the wastage. This helps to promote greater efficiency in tightening accounting practices.

5. Double-Check Internal Audit Sometimes Internal auditors cannot do the auditing of financial statements accurately because of their closeness to the company. In such a case, external auditor can look and double-check their work to make sure the accuracy level of the financial statements.

Bottom line External auditor in Bahrain plays a very important role to set up the rapport of the company by working on its credibility and compliance with tax laws. They provide valuable insight into business information. Their findings and audit processes give them confidence and reassurance for the healthy financial future of the business.