Audits in Dubai
Updated on Wednesday 02nd February 2022
Rate this article 7 reviewsbased on
According to the local legislation applicable in Dubai, United Arab Emirates (UAE), companies with operations set up here are required to perform audits, which represent a procedure attesting that the operations carried out by the company respect the provisions of the Commercial Law. At the same time, the audit procedure refers to the activities carried out by the auditors, who will verify if the company’s documents can attest to its current financial situation. If you need to perform an audit in Dubai and you are searching for an audit company in Dubai or you are looking for suitable accounting services, we suggest you address to our team of accountants in Dubai for support and complete information.
What are the financial statement audits in Dubai?
Financial statement audits, also known as statutory audits, refer to the examination of the financial documents of the company, an action performed by an accredited and independent auditor. The audit of the financial statements is performed to verify if the company presented its financial situation in a fair manner. The audit is done by an audit company in Dubai under the International Financial Reporting Standards (IFRS) and it will provide, amongst others, the following:
- the real financial situation of a company in Dubai;
- transparency between the management of the company and the shareholders;
- identify areas which are vulnerable from a financial point of view;
- varied measures can be recommended for avoiding the vulnerable sectors in the company.
Investors with operations in the free zones of Dubai are also required to perform audit procedures, which will have to be submitted to the local authorities at the moment in which the companies are required to receive a new trading license; our auditing firm in Dubai can offer you assistance in this matter. Also, you can explore the following infographic:
What are the main operations of an audit in Dubai?
Verifying the financial status in a firm is made with the help of audits which can reveal if there are any issues or risks linked to the company’s structure. Because an audit respects the IFRS regulations, the following operations are important when performing an audit in Dubai:
- the management structure is evaluated in order to discover whether there are any particular problems;
- transparency and objectivity are ensured when conducting an audit in Dubai;
- an audit can reveal the vulnerable areas in a company for which strict measures can be implemented;
- optimizing the profits in a company might be the solution after an audit in Dubai, and varied methods can be implemented.
Whether you have a small, medium, or a large company, it is recommended to ask for audit services in Dubai. We are one of the accounting and auditing firms in Dubai at your disposal with complete support in matters of accounting. Furthermore, in case you need other types of services in Dubai, for example, renting a yacht, we can put you in contact with our partners from Dubai-Yachting.com.
What is an internal audit in Dubai?
Companies in Dubai can also perform an internal audit, a procedure which refers to the verification of the risks incurred by the management of the company or the internal control of the structures of the company. The main purpose of the internal audit is to identify weak systems and to prescribe solutions for them, in order to develop the financial potential of the company.
The financial and management reports alongside the analysis of risks in a company can be determined by an internal audit. This procedure involves an analytical evaluation of the internal management and can identify the potential issues in a firm, also considering the actions and measures which can be adopted in this situation. Likewise, it is good to know that an internal audit in Dubai confirms compliance with a wide range of rules. We remind you that you can rely on the services offered by our accounting and auditing firm in Dubai who can properly review the financial records and statements of an enterprise in Dubai.
Here is a video that explains the audit procedures for companies in Dubai and the services provided by our accounting and auditing firm in Dubai:
Who can perform audits in Dubai?
A professional financial auditor can perform audits in Dubai for small, medium, and large companies with establishments in this city. Knowing how to communicate, having an idea about the business environment, the risks, and providing complete transparency when making audits are a few of the attributes of a financial auditor. We can handle the audits in your firm, as we are a team of advisors experienced in such matters who put the accent on the importance of an appropriate analysis in the company, regardless of the sector of activity.
The Financial Audit Department in Dubai
FAD or the Financial Audit Department in Dubai is the institution that oversees the financial audits for companies in Dubai and the management of the financial operations in firms. Among the purposes of FAD we mention the transparency with which all audits must be performed and the effectiveness when controlling and planning the operations in an audit procedure.
The FAD reports to the Ruler of Dubai and is an independent institution since 2007. The meaning of this important body is to control and to verify the periodical financial audits and to offer potential improvements related to the management of financial operations. In other words, the main objectives are connected to efficiency and correctness for a proper function of all companies in Dubai which pay taxes or other annual fees. The Dubai accountant can offer assistance and guidance if you are interested in the taxation system in Dubai or if you need accounting services.
Conditions to become a financial auditor in Dubai
I order to become a qualified financial auditor in Dubai you need to have the proper knowledge in this domain and a Bachelor's Degree in economics. Besides that, it is necessary to add two years of special qualifications and three more years of performing as a financial auditor employee in Dubai. Individuals who wish to become financial auditors are trained to properly understand what financial analysis is and how to create and a financial report for all types of companies in Dubai. The most important step is to pass the exams which imply questions and topics about the needed techniques related to the management of audits in Dubai.
Knowledge about the internal audits in Dubai
Every individual who wants to be certified as an internal auditor in Dubai needs to gain knowledge in different areas like:
Every individual who wants to be certified as an internal auditor in Dubai needs to gain knowledge in different areas like:
- business processes;
- risk management;
- financial management;
- business environment worldwide;
- management of a company;
Besides proper knowledge about the financial system and economy in Dubai, a future financial auditor needs to practice and make audits for companies in Dubai, under the supervision of a qualified financial auditor. The practice implies the proper analysis of risks and frauds in a firm and a suitable investigation related to every financial situation of a company.
A good financial auditor in Dubai can make the difference
The purpose of an audit is to offer competence, complete transparency, and to find and implement significant approaches for every company in Dubai. A financial auditor in Dubai needs to offer a fair report related to the financial statements of an enterprise, according to the rules and regulations of the IFRS (International Financial Reporting Standards).
Credibility for small and new companies in Dubai
As an important business hub and with varied opportunities in most of the industries, Dubai welcomes investors who are at the beginning of the road. Such companies can ask for bank loans in the UAE, especially in the first years of business, and an important requirement in front of financial authorities is the credibility. An external auditor will offer audit services in Dubai and evaluate such a company and will decide whether the business has accurate financial reports or not. This kind of audit will help small companies create a positive reputation and a solid business image when asking for credits.
Hiring the services of auditing companies in Dubai
Having the support of an auditing company in Dubai will weight quite much for investors and entrepreneurs who want to concentrate more on the business direction and development of the operations. There are many companies in Dubai that enjoy the benefits of externalized accounting services instead of creating a whole department. All the financial matters can be controlled better by a dedicated accounting firm that can develop and provide varied financial analyses, comprehensive internal and external audits, reports, and risk management solutions. Most of the accounting tasks and operations can help a company perform better if the weak points and possible issues are discovered and solved. The audit department of an accounting company in Dubai can conduct a series of analyses and reports, in compliance with the local and international accounting laws. If you would like to hire the services of an auditing company in Dubai, please feel free to talk to us and address all your questions to our team of experts and consultants. We can help your company from a financial point of view and act in complete transparency.
If you need audit services in Dubai in order to determine if you had issues regarding the payments you had done, we can put you in touch with our partners at PaidAnalytix.
FAQ about audits un Dubai
1. What types of audits are available for my company in Dubai?
Internal and external audits are the main types of audits needed and performed in a company. Such audits can be performed by one of our accountants in Dubai if you decide on hiring our services.
2. Why do companies need audits?
Audits can report the risks and the vulnerable areas in a company, from a financial point of view. More than that, financial advisors can propose a series of solutions for optimizing the profits and specific financial matters that can help companies avoid problems.
3. Who needs audits in Dubai?
Small, medium, and large companies in Dubai must pay attention to all applicable accounting matters, among which, audits are of high importance. You can solicit accounting services from our team of advisors in Dubai.
4. What are financial statement audits?
The financial statement audits are also named statutory audits and are connected to the verification of all the financial documents in a company in Dubai. Such verification is normally performed by an independent and accredited auditor in Dubai. You can get in touch with us for details in this sense.
5. What is an internal audit in Dubai?
An internal audit is an internal financial control of a company that is normally performed to identify whether there are risks or weak points in the firm. Once a report is revealed, the management in the firm can decide on specific solutions for future financial developments and operations in the firm.
6. What is a financial risk analysis?
Audits can detect most of the financial risks that can occur in a company. A complete analysis can be performed by a professional accountant in Dubai, mentioning that he/she will perform an internal audit and other specific procedures if needed.
7. Who performs audits in Dubai?
Professional financial auditors can perform audits for companies in Dubai, regardless of their structure or size. One should verify the qualifications of an auditor before signing a collaboration contract.
8. Why choose auditing companies in Dubai?
It is recommended to hire the services of auditing companies in Dubai instead of creating a whole department for financial operations. Complete accounting services can be provided by our team of specialists.
9. How can I verify an accountant in Dubai?
Those looking for accountants in Dubai must verify if they are Certified Public Accountants. They can perform audits, deal with payroll, bookkeeping, and financial planning. We remind you that our team of accountants in Dubai are certified and can be hired for your company in Dubai.
10. What accounting rules are applicable in Dubai?
International Financial Reporting Standards stand at the base of all accounting requirements and matters. All accountants must act in complete agreement with the general and local accounting rules and requirements.
Short conclusion about audits in Dubai
The business operations of a company in Dubai are subject to annual audits that can be performed by our auditing firms in Dubai. Our team can issue a report which will reveal whether the financial operations are in compliance with the accounting rules applied, and the legal obligations or if there are certain matters to consider. Discovering the weak points and problems in the sectors of activity will in most cases represent the starting point for future improvements of business in Dubai.
Investments in Dubai
Dubai is among solid and appreciated business destinations in the world, and the following facts and numbers highlight the economy direction on the UAE:
- Around USD 140 billion was the total FDI stock for UAE in 2018.
- Since July 2019, foreigners activating in 122 economic activities in the UAE can have 100% ownership in their firms.
- According to the 2020 Doing Business report issued by the World Bank, the UAE ranks 16th out f 190 economies in the world.
- Most of the FDIs are directed to sectors like finance and insurance, construction, and manufacture.
If you need further information on audits in Dubai, please contact our audit firm for assistance.