3 Types of Audit and Assurance Services in UAE

As per Article 27 of Federal Law No (2) of 2015 or Commercial Companies Law, businesses are to retain at least one auditor to audit accounts every single year. Shareholders or partners are also to obtain audited financial statements and audit reports from auditors in the UAE.

Article 236 also stipulates accounts of a company from a fiscal year are to be reviewed by an independent audit firm in Dubai or DMCC approved auditors who shall prepare an audit report thereon. The audited financial statements are to be provided to the company's Board of Directors during the General Assembly four (4) months before the end of a fiscal year. The company shall also provide competent authorities in the UAE e.g. Federal Tax Authority, copies of audited financial statements and audit reports no more than seven (7) days from the convening of the General Assembly.

Here Are the Types of Audit and Assurance Services in the UAE

The type of engagement necessary will depend on the purpose or goal of a business.

Review Engagement

A review conducted by top audit firms in Dubai provides limited assurance to users that the financial statements comply with international and UAE standards on financial reporting.

Review and audit are different engagements. A review engagement offers less assurance because the auditors in UAE won’t execute the more thorough audit processes.

  • Company’s accounting practices
  • Processes for accumulating and recording financial information
  • Actions that are taken during meetings of owners or directors
  • Responsibility and systems of management in preventing and detecting fraud
  • Written representations from the management with the accuracy of information provided by the company accountant
  • Knowledge of fraud
  • Analytical procedures for comparisons
  • Information concerning significant subsequent events
  • Ratios from the amounts recorded in books
  • Expectations that are developed by accountants on recorded amounts
  • Plausible relationships of the amounts recorded in books

These analytical procedures and more are done by audit firms in Dubai during a review engagement. All of them are to provide a better understanding of the key relationships of certain numbers. The understanding also gives assurance on the soundness of financial condition which is presented in the company's financial statements.

Compilation Engagement

With a compilation engagement, audit firms in Dubai assist the management in presenting available financial information through the use of financial statements. However, there will be no assurance of their reliability and no material modifications will be provided so the financial statements conform to international and local financial reporting standards.

In comparison to a review engagement, a compilation involves a rather limited scope of procedures. This means the hired audit firm in Dubai will produce a report that won’t express any opinion or offer assurance on the financial statements.

A compilation involves:

  • Gaining an overview of the business, its financial reporting system, and accounting principles
  • Presenting financial information using the accepted format for financial reporting

The auditors in UAE, including DMCC-approved auditors, will express no assurance on the accuracy of the financial information presented. A report will emphasize that the service provided by the audit firm in Dubai is a compilation engagement.

You should read: Reasons for hiring an Audit Firm in Dubai

Audit Engagement

An audit engagement, on the other hand, provides the users of financial statements with an opinion on whether or not the financial statements have been prepared according to proper financial reporting standards. An audit engagement completed by an independent audit firm in Dubai enhances the level of confidence users can place in the company accounts. This includes investors, lenders, and competent authorities.

The important procedures done during an audit engagement include:

  • Evaluation of the company’s internal control system
  • Inquiry to gain a full understanding of the business, including financial reporting and operations
  • Observing physical inventory count or performance of inventory count audit
  • Testing documentation that supports classes of transactions or account balances
  • Performing analytical processes on unexpected or expected variances
  • Confirmation of account receivables with third parties

The tax authorities in UAE require a clean or unqualified opinion from audit firms in Dubai on the financial statements of companies. An unqualified opinion contains the assurance that the financial statements are presented fairly and conform to accounting principles.


AFD provides businesses across the United Arab Emirates peace of mind knowing they're in full compliance with statutory requirements of government agencies and tax authorities. We also use our accounting and audit proficiency to monitor business operations and give proactive advice on how the bottom line and the net worth of companies can be improved further.

Our auditors are some of the leading players in the audit and accountancy industry with services spanning from audit and assurance, risk consulting, tax advisory, and management consulting.