Audit Services
External and internal audit services in line with the professional standards adopted in the State of Qatar, from a chartered accountant registered with the Ministry of Commerce and Industry under No. 456.
External audit
A systematic, independent examination of your financial statements that ends in a professional opinion relied on by official bodies, the General Tax Authority, investors and lenders.
An audit is a systematic, independent examination of a company’s data, statements, records and activities, both financial and non-financial, to gather and evaluate evidence and express a professional opinion on them in a report covering a defined period. As one of Qatar’s licensed audit firms, we take pride in shaping our approach around each client’s audit requirements.
External audit means having the accuracy of a business’s financial operations and records verified by an external auditor who is independent of it. It is essential for staying compliant with the laws of the State of Qatar and with accounting and financial standards; it helps bring current or emerging issues to light and confirms that the entity’s financial statements are sound.
As an auditor registered with the Ministry of Commerce and Industry under No. 456 and a member of the Qatar Association of Certified Public Accountants, we invest in continuous development and training and keep up with new requirements, so that the quality of every audit we perform meets recognised accounting and professional standards and our work stays independent, unbiased and professionally objective.
External Audit: Meaning and Scope
What is an external audit?
An external audit is an examination carried out by an independent chartered accountant, usually to produce a professional opinion on the financial statements of companies, institutions or authorities. That opinion is required by official bodies, the General Tax Authority and some investors and lenders, and public joint-stock companies need it too.
Bader Farhan Al-Ahmad Office for Accounting, Auditing & Consulting provides external audit in the State of Qatar in line with laws, regulations and international standards. Our year-end external audit work aims to confirm that the financial information companies present is reliable and complies with legal requirements and financial reporting standards.
Scope of the external audit
Our audit and assurance practice focuses first and foremost on verifying financial statements and delivering an integrated audit service, with the aim of improving financial reporting and compliance with accounting and auditing standards. Our tried-and-tested approach combines a multidisciplinary, experienced team with effective working procedures.
Why Bader Farhan Al-Ahmad Office?
Sound business and management decisions depend on reliable financial information. We work with all kinds of companies, institutions and authorities to help managers, business leaders and stakeholders in every sector present a fair picture of their financial performance, and our experienced team can handle complex business issues and transactions.
What We Deliver
01
Annual financial statement audit
A full year-end audit of your financial statements, ending in an independent auditor’s report in line with the accounting and auditing standards adopted in Qatar.
02
Audited accounts for the tax return
Financial statements audited by an auditor registered in Qatar, ready to attach to your tax return where the Income Tax Executive Regulations require it.
03
Periodic (limited) reviews
A review of interim financial statements that gives limited assurance in less time and at lower cost than a full audit.
04
Agreed-upon procedures
Checks on specific items or accounts that you agree with us, reported as factual findings without an overall opinion.
05
Internal control assessment
An assessment, within the audit, of how your internal controls are designed and how well they work, identifying weaknesses that affect the accuracy of financial reporting.
06
Stock counts and asset verification
Attending inventory and cash counts and verifying assets and liabilities, a right the law gives the auditor at whatever time it considers appropriate.
07
Management letter
A letter to management setting out the weaknesses found during the audit, with practical suggestions to address them.
08
Internal audit
A review of policies and procedures and an assessment of risks, controls and operational efficiency, arranged so that it does not conflict with external audit independence.
Our External Audit Process
01
Engagement letter and first meeting
We sign the engagement letter and hold a first meeting with you to agree the scope and objective of the audit, the timetable and the documents we need.
02
Planning and understanding risk
We get to know the business and its risks, review internal controls and set the audit programme, resources and timing, so that we can obtain reasonable assurance that the financial statements are free of material misstatement.
03
Evidence gathering and testing
On a test basis we examine the amounts and disclosures in the financial statements against their supporting documents, test controls and transactions, and review accounting policies for compliance with standards and legal requirements, with review and supervision at every stage.
04
Analysis and draft report
We document the audit working papers, analyse the results, and prepare and discuss the draft report with you, including any proposed adjustments.
05
Final report and management letter
We issue the independent auditor’s report with our opinion on the financial statements and hand you the management letter, setting out the weaknesses we found and suggestions to overcome them and improve your operations and accounting systems.
Internal Audit
Internal audit assesses a company’s internal controls, including corporate governance and accounting processes. It helps ensure compliance with laws and regulations and keeps financial reporting and data collection accurate and timely.
Bader Farhan Al-Ahmad Office for Accounting, Auditing & Consulting provides internal audit services to clients in the State of Qatar to assess business risks and controls and to improve procedures and performance. We carry out a thorough review of the company’s policies and procedures, test compliance with internal requirements, share best-practice, cost-saving and risk-reduction recommendations, and point out additional revenue opportunities you may not be using.
When we accept an internal audit engagement, we make sure it does not conflict with the external audit independence the law requires.
- Compliance with the organisation's policies and procedures.
- Performance and operational efficiency.
- Fraud deterrence and investigation.
- Asset protection.
Why Does Your Company Need an Audit?
01
Regulatory compliance
Meeting legal requirements in Qatar: the Commercial Companies Law requires joint-stock and limited liability companies to appoint an auditor.
02
Building trust
Strengthening the confidence of investors, shareholders, banks and partners in the reliability of your financial statements.
03
Detecting errors and risks
A careful, systematic analysis of your financial data that helps uncover errors, fraud or manipulation.
04
Supporting strategic decisions
Reliable financial information that enables management to make sound strategic decisions at the right time.
05
Tax compliance
The Income Tax Executive Regulations require audited accounts with the tax return in defined cases, and an audit reduces the risk of inaccurate returns.
06
Management letter
We discuss weaknesses with you and offer practical suggestions to improve your operations and accounting systems.
Auditing in Qatar: The Rules and Who Needs an Audit
The audit profession in Qatar is governed by Law No. 8 of 2020, which set up the registers of auditors at the Ministry of Commerce and Industry. Only registered auditors may practise, and they must follow the accounting and auditing standards adopted in Qatar and the profession’s code of conduct.
- Public and private joint-stock companies: must have one or more auditors appointed by the general assembly (Articles 141 and 206 of the Commercial Companies Law).
- Limited liability companies: must have one or more auditors appointed by the general assembly each year (Article 260).
- Tax returns: must be accompanied by accounts audited by an auditor registered in Qatar where capital exceeds QAR 200,000, total income exceeds QAR 500,000 or the head office is outside Qatar; this also applies to tax-exempt taxpayers that meet any of these conditions.
The law also prohibits an auditor from having any interest in a client or auditing an entity to which it provides consulting work, to protect the independence of the opinion that partners and official bodies rely on.
Frequently Asked Questions About Auditing in Qatar
What is the difference between an audit and a limited review?
An audit provides reasonable (high-level) assurance that the financial statements are free of material misstatement and involves wider procedures, including testing controls and supporting documents. A limited review provides limited assurance and relies mainly on enquiries and analytical procedures, so it is quicker and cheaper, but it cannot replace an audit where the law requires one.
How long does an audit take?
It depends on the size of the company, the complexity of its transactions and how ready its records are. For small and medium-sized companies it typically takes 2 to 6 weeks from the date we receive the complete set of documents.
Is an audit mandatory for my company?
Qatar’s Commercial Companies Law requires public and private joint-stock companies and limited liability companies to have an auditor appointed by the general assembly. In addition, the Executive Regulations of the Income Tax Law require audited accounts to be attached to the tax return where capital exceeds QAR 200,000, income exceeds QAR 500,000, or the head office is outside Qatar. We help you work out what applies to your company’s legal form and activity.
How much does an audit cost?
It depends on the company’s size, the nature of its activity, the number of branches and the complexity of its transactions. We provide a clear quotation after the initial meeting.
Can the audit be carried out remotely?
Yes. A large part of the work can be done remotely, but we may need a site visit, particularly to attend asset and inventory counts and to inspect original documents.
What happens if the auditor finds material misstatements?
We discuss the findings with you first and ask for them to be corrected, where possible, before the final report is issued. If material misstatements are not corrected, the audit opinion may be modified (qualified or adverse), depending on their effect on the financial statements.
Do you provide advice during the audit?
Yes, within the limits the law allows. We give practical recommendations to improve your accounting and control systems through the management letter issued as part of the audit. Separate consulting work, however, may not be provided by an auditor to an entity whose accounts it audits under Law No. 8 of 2020, and we will explain the right arrangement for your needs.
Need advice on audit services?
Our team is here to help. Contact us now to discuss your company’s needs and receive a tailored proposal.