The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
An audit in Dubai is a crucial process in which a business's financial records and statements are thoroughly reviewed by an independent auditor. The primary objective of the audit is to ensure that the financial statements accurately depict the financial position of the business. To achieve this goal, the audit must be conducted with objectivity, free from bias or preconceived notions.
An audit process can be conducted in-house, with the company's staff performing the internal audit in Dubai, or by an external audit services agency certified to provide audit services. Regardless of the method chosen, performing an audit in Dubai is crucial to maintaining the financial integrity of a business, and it is highly recommended that businesses seek professional assistance in conducting their audits.
Internal Auditing in Dubai
Internal audit in Dubai involves the examination, scrutiny, and enhancement of business operations by one or more in-house auditors. The internal auditors are employees of the business and possess a comprehensive understanding of its operations, including financial processes.
Through internal auditing, businesses in Dubai can identify potential areas of improvement, assess risks, and ensure compliance with applicable laws and regulations. The internal audit process can be customized to meet the specific needs of the business and can cover a range of operational areas, including finance, accounting, information technology, and human resources.
Benefits of Internal Auditing
Internal auditing is an important process for businesses to identify risks associated with their daily operations, verify their financial data, and improve overall performance, procedures, and operations. Internal audit in Dubai helps ensure that the organization's compliance is up to date and facilitates an easy external audit process.
External Auditing in Dubai
Businesses are obligated to conduct a mandatory external audit in Dubai at various points throughout their lifespan. The shareholders of the company engage a third-party external auditor to conduct an objective and accurate assessment of the company's financial status. Once the audit is completed, the external auditors produce an audit report that summarises the details of the auditing process, as well as any concerns or recommendations going forward.
Benefits of External Auditing
External auditing ensures adherence to the International Financial Reporting Standards (IFRS), which is the primary legal financial reporting standard in the UAE. It involves the engagement of qualified and experienced auditing professionals to deliver impartial and precise reporting. External audit in Dubai also assists businesses with financial anomalies that arise due to internal auditing. The external auditors are equipped to identify potential risks and weaknesses in internal controls that may have been missed during the internal audit process.
Audit in Dubai - Legal Obligations
By law, most businesses operating in the UAE are mandated to have their financial statements audited by a licensed audit firm, especially companies in Free Zones, those requiring liquidation, and those subject to the UAE Corporate Tax Law. The external audit report must be submitted to the respective licensing authority (DED/Free Zone) for Trade License renewal, and to the Federal Tax Authority (FTA) for Corporate Tax compliance.
Businesses are required to maintain all financial, tax, and company records for a minimum of seven years to comply with the UAE Corporate Tax Law and VAT Law requirements. Adhering to this requirement can make the auditing process smoother for businesses, as it provides the necessary information for auditors to conduct a thorough review.
Factors to Consider When Choosing an Audit Firm
Choosing the right audit firm is crucial for businesses seeking professional and expert audit services in Dubai. Several factors should be considered before making a decision, including the firm’s experience in auditing businesses in the UAE, its audit fees, and its reputation in the industry. Requesting references from other business owners who have used the audit firm’s services can also provide valuable insight into their performance.
When selecting an audit firm in Dubai, it is essential to choose one with qualified professional auditors who have a deep understanding of your business structure and culture. They should have extensive experience in auditing businesses similar to yours, with a proven track record of delivering accurate and objective audit reports. Additionally, they should be able to communicate effectively and work collaboratively with your team to ensure a smooth and efficient audit process.
With years of experience, Reyson Badger, one of the leading accounting and auditing firms in Dubai, UAE, meets the specific needs of businesses and delivers high-quality audit services that comply with international standards and regulations.
