Under United Arab Emirates (UAE) Federal Law No (2) of 2015 or Commercial Companies Law, all limited liability companies (LLCs) and joint-stock companies are mandated to appoint auditing firms in Dubai or the UAE to audit company accounts every fiscal year.
Companies in free zones across the UAE, however, will be subjected to the requirements of the respective free zones. International Free Zone Authority (IFZA) is one of the jurisdictions that don’t require businesses to submit annual audited financial statements. Dubai Multi Commodity Centre (DMCC) and Jebel Ali Free Trade Zone (JAFZA), on the other hand, are some of the free zones that require companies in filing annual audited reports.
Audit firms in Dubai, including DMCC approved auditors and JAFZA approved auditors, require a set of documents prior to an audit engagement. To check if your company is already “audit-ready,” it is advised to have the following documents ready by the year-end:
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Pursuant to UAE Commercial Companies Law Article 245, an audit firm in Dubai shall issue an audit report on accounts that were audited. For companies that appoint more than one approved auditor, all the auditors are to distribute duties and prepare separate audit reports in relation to assigned tasks. The auditors must also prepare a single report for tasks in which they are liable jointly. The combined report has to bear all necessary information of the auditors, including names and signatures.
Audit reports must specifically highlight if accounts are in accordance with provisions of UAE Commercial Companies Law and if accounts depict a company’s true financial position.
Mandatory or not, all companies operating in the UAE are encouraged to get financial statements audited as a business practice. Auditing firms in Dubai can help meet statutory requirements, support in the identification of opportunities for profit generation, and aid in achieving business objectives. Our auditors, in particular, do more than look after routing and statutory accounting and financial operations. At Audit Firms in Dubai, you can also count on our brilliant experts to utilize their extensive advisory experience in monitoring your business and providing proactive advice which can impact the company’s bottom line.
Our personal and partner-led audit services in UAE are tailored to the needs of your business. Contact us today to address all of your audit concerns!
Kasun Liyanage is an Audit Manager with over 7 years of experience dealing with diversified corporate clients. He not only manages the team’s work schedule but also is an expert in handling audit areas such as external audits and fraud investigation, Internal control benchmarking and best practices and well as preparation of financial statements and IFRS compliance.