Statutory Audit Services

Statutory Audit Services UAE – Approved Statutory Auditors in Dubai

Statutory audit services are mandatory to a large number of companies in the mainland and free zones in the UAE. Statutory audit establishes that the financial statements of a company are correct, in accordance with the UAE regulations, and that they are prepared in accordance with International Financial Reporting Standards (IFRS). To assess compliance and provide an official audit report, business in Dubai and the UAE in general depends on statutory auditors to examine records.

In Dubai, our statutory audit services assist companies to comply with regulatory requirements, financial transparency and prepare to be bank financed, report to investors and comply with government regulations.

What Is a Statutory Audit in UAE?

A statutory audit is a mandatory audit of the financial statements of a company undertaken by licensed auditors in the UAE. It is aimed at making sure that the statements are a true reflection of the financial situation of the company and are in accordance with the UAE laws and IFRS standards.

Statutory audits are usually mandatory on:

• Mainland LLC companies
• Free zone companies
• Holding companies
• Regulated businesses
• Firms seeking loans or investor financing.
• Firms that renew trade licenses in some free zones.

UAE requirements of statutory audit annually differ by jurisdiction, although the majority of companies are required to have audited financial statements.

Statutory Audit Requirements in UAE for Mainland and Free Zone Companies

There is a difference between statutory audit requirements of mainland and free-zone companies. Most free zones include DMCC, JAFZA, DAFZA, RAKEZ and ADGM which demand audited financial statements to be submitted yearly.

Companies which normally need statutory audit:

• Free zone companies
• Mainland companies (depending on activity)
• Branch offices
• Holding companies
• Businesses seeking bank loans.
• Multiple shareholders companies.
• Firms that need compliance reporting.

Lack of statutory audit can lead to:

• Trade license renewal problems.
• Free zone penalties
• Compliance violations
• Banking issues
• Problems with investor reporting.

Statutory Audit Process in UAE

The UAE statutory audit process is structured and adheres to compliance and proper reporting of financial matters.

Statutory Audit Procedure:

• Nomination of statutory auditors.
• Knowledge of the company business and financial structure.
• Accounting records and financial statements review.
• Risk evaluation and auditing planning.
• Financial transactions and internal control testing.
• Asset, liabilities, revenues, and expenses verification.
• Review of compliance with the IFRS and UAE regulations.
• Preparation of the audit report.
• Publication of the statutory audit report.

The statutory audit report is an assurance that the financial statements are true and fair.

Documents Required for Statutory Audit in UAE

Before the statutory audit commences, companies are supposed to prepare financial and accounting records.

Documents required include:

• Financial statements
• Trial balance
• General ledger
• Bank statements
• Sales invoices
• Purchase invoices
• Expense records
• Fixed asset register
• Inventory records
• VAT returns
• Company tax returns (where necessary)
• License and incorporation documents of the company.

Effective documentation assists in the completion of the statutory audit in a shorter period and compliance.

Statutory Audit Report UAE

Auditors give a statutory audit report after the statutory audit. This report indicates whether the financial statements of the company are prepared in compliance with the IFRS and UAE regulations and whether they give a true and fair picture of the financial position of the company.

The audit report may be needed by:

• Free zone compliance
• Bank financing
• Investor reporting
• Corporate tax compliance
• Company liquidation
• Mergers and acquisitions
• Government submissions

Statutory Audit for Free Zone Companies in UAE

In the UAE, most free zones have statutory audit reports which are mandatory to be prepared annually.

Examples of free zones that demand audit report are:

• DMCC
• JAFZA
• DAFZA
• Dubai Silicon Oasis
• RAKEZ
• ADGM
• Sharjah Free Zones
• Ajman Free Zone

To stay afloat, companies are required to provide audited financial statements on an annual basis.

Statutory Audit for UAE LLC Companies

The LLC companies in the UAE usually require statutory audit of:

• Bank loans
• Investor reporting
• Corporate tax compliance
• Shareholder reporting
• Business valuation
• Company restructuring

Although not required by law, annual statutory audits of financial transparency and compliance are done by many companies.

Statutory Audit Cost in UAE

In UAE, statutory audit fees are dependent on:

• Company size
• Number of transactions
• Industry
• Company structure
• Accounting records quality.
• Free zone or mainland company.
• Number of branches
• Complicated financial reporting.

The cost of audit is dependent on the scope of work and company size.

Why Choose Professional Statutory Auditors in Dubai?

Professional statutory auditors guarantee:

• Adherence to the UAE regulations.
• Financial statements prepared in IFRS.
• Proper financial reporting.
• Risk identification
• Internal control review
• Financial transparency
• Auditing of corporate tax and VAT.
• Bank and investor reporting
• Free zone compliance requirements.

Statutory audits assist companies in keeping appropriate financial records and prevent compliance problems.

Our Statutory Audit Services in Dubai Include

In the UAE, our statutory audit services involve:

• Annual statutory audit
• Financial statement audit
• IFRS compliance review
• Free zone audit reporting
• Mainland company audit
• Audit report preparation
• Internal control review
• Compliance audit support
• Corporate tax audit support
• VAT audit support
• Financial risk assessment
• Audit documentation review

Contact Our Statutory Audit Firm in UAE

In case your company needs statutory audit services in Dubai or in any part of the UAE, professional statutory auditors would be able to assist in ensuring compliance, proper financial reporting, and approval by the regulatory body. You can also refer to UAE financial reporting standards from IFRS Official Website.

Our audit firm offers statutory audit services to mainland firms, free zone firms and international firms in UAE.