If you own a business in Dubai or are planning to establish a business in Dubai, it’s important you understand auditing services. Auditing is a methodical examination of statutory records, books, accounts, documents or an organization to ensure how accurate the financial statements are. Auditing services in Dubai help to reassess the acquiescence with a multitude of managerial regulations as well as reassure the effectual operation of a business.
Auditing service in a nutshell
Auditing service is the process where an independent auditor reviews the financial statement and records of a business. These financial records are required to be looked at precisely and carefully, without any bias. Whether it is a large size business or small-scale business, audits can be performed for all.
Benefits of Auditing services
1) Check and maintain business compliance
2) Identify irregular or fraudulent activities
3) Assist in tax submission and company liquidation
4) Promotes transparent business operations
5) Ensure the overall growth of the business
Types of auditing services Dubai
Internal Audit Services in Dubai
Internal auditing is the process of autonomous and consulting activity designed to add value and improve the overall financial operations of a business. Businesses need to conduct internal auditing since it helps them to re-evaluate each control and analyze it in terms of cost and benefits. Internal auditing helps businesses identify the risks associated with everyday business operations. Internal auditing also helps to check and verify the financial goals of a business while improving the overall performance of the business. Conducting business auditing ensures that your organization’s compliance is up to date.
External Audit Services in Dubai
External auditing is the process that is conducted by an independent accountant who is not associated with the company or the department that is under the audit. An external audit looks at the accuracy of the financial statements of a company and also whether the accounting practices comply with the rules or regulations. The auditors here also verify whether the financial reports and records offer an accurate picture of the performance of the company. Conducting an external audit ensures your adherence to the GAAP and IFRS compliance standards. External auditing offers impartial and thorough reporting. Moreover, businesses can get to know about the financial anomalies that may arise due to internal auditing. External auditing also helps to put an added layer to the credibility and quality assurance of your business.
Tax audit is another important auditing service that is an examination of the tax returns submitted by a business entity or an individual. This is done to check if the tax information and whether any resulting income tax payments are valid or not. A tax audit helps to determine the amount of taxes owed by examining bookkeeping filings, VAT returns, accounting records and corporate tax. In the majority of cases, a standard external audit may help to detect anomalies related to tax.
A financial audit is a process to scrutinize the information contained within the financial statement of a business entity. This is the most common type of audit service that involves the examination of the account books and other irrelevant records. This helps to provide relevant information to the auditor to express his opinion on whether the accounts are complied with all necessary statutory accounting and auditing standards and are properly maintained.
Is it mandatory for all UAE businesses to be audited?
The UAE Commercial Companies Law stipulates that every company whether big or small must assign skilled auditors to assess an auditor who should be registered under the Ministry of Economy financial records. So, in other words, the companies located in the UAE mainland are subject to conduct auditing. It will be interesting to know that while the law states that auditing needs to be conducted for UAE and Dubai businesses, it does not reinforce the submission of the final report. In simple words, it’s a requirement to conduct external auditing, however, submitting a report is not mandatory.
Below are the mention of the several free zones in which mandatory submission of the audited financial statements is not required such as:
- Dubai Airport Free Zone (DAFZA)
- Dubai International Financial Center (DIFC)
- Dubai World Central (DWC)
- Jebel Ali Free Zone (JAFZA)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Fujairah Creative City Free Zone
You must keep in mind that foreign companies are entitled to submit their audited reports every year.
If you want the latest information on accounting and auditing services in Dubai, our experts are here to help.
Also, you can visit our Facebook page to stay updated with new posts.