An external audit is an independent examination of the financial statements prepared by the organization; It is usually conducted for statutory purposes. The results in an audit opinion about whether the financial statements give a 'true and fair' view of the:
- State of affairs of the organization
- Operations for the period
External auditors in Dubai work independently, they examine company records and operations to ensure financial statements are accurate. External auditors are important partners in establishing your business' credibility and ensuring compliance with regulatory & tax laws.
In UAE business environment, Audit firms in Dubai mainly focus on following most common audits requirements.
Audit for Authorities
Audit in Dubai or any part of the world is similar to a medical check-up; it not only diagnoses but also prevents the occurrence of problems. In UAE, generally audit report submission is not a mandatory; however, certain free zones require companies to submit annual external audit in Dubai and other emirates. Audit for free zones like Audit for DMCC, Audits for DDA and Audits for RAKEZ is usually for license renewal purposes. The scenario has changed with the implementation of VAT and Corporate Tax in UAE.
Audit for Banks, RERA and Liquidation
Apart from audit for authorities, Banks also need audited financial statements to extend credit facilities or loan to a business. Similar to free zones, RERA also requires submission of audit financial statements of owners' associations and developers. The third and most undesirable audit is conducted upon liquidation (closing) of a company in Dubai which is required by DED/Free Zones to issue a closure certificate. Is it very convenient to approach Audit firms in Dubai to conduct the audit annually.
Audit for Owners/Partners/Investors
It is always recommended to get books of accounts audited, however business owners need external audit services in Dubai to see how their business is doing, and their assets are protected and business position. Further to it, owners or outgoing/incoming partners or investors' needs audited financial statements to claim their share or make an investment decision.
With the introduction of Corporate Tax in UAE (#UAECT), audit will be mandatory for all businesses in Dubai sooner or later. The Top Tax Consultants in Dubai are already in touch with their valued clients to start preparing for UAECT. For more expert guidance please contact us.
