Businesses are required to hire at least one auditor to audit accounts annually under Federal Law No. (2) of 2015’s Commercial Companies Law, which is governed by Article 27. The audited financial statements and audit reports must be obtained by shareholders or partners from UAE auditors.
Article 236 further specifies that an independent audit firm in Dubai or DMCC approved auditors must analyze a company’s financial statements from a fiscal year and prepare an audit report. In the General Assembly held four (4) months before the end of a fiscal year, the audited
financial statements must be delivered to the board of directors of the firm. The corporation must deliver copies of audited financial statements and audit reports to the UAE’s responsible authorities, such as the Federal Tax Authority, or later than seven (7) days after the General Assembly’s convening.
Types of audit and assurance services provided in the UAE
Businesses in the UAE also purchase audit and assurance services for a variety of reasons beyond from statutory or regulatory needs, such as for management decision-making and third-party obligations. The kind of participation required will depend on a business’s aim or goal.
- Review Engagement
The roles of review and audit are different. A review engagement provides less assurance due to the UAE auditors’ refusal to carry out the more rigorous audit procedures. During a review engagement, the top audit companies in Dubai examine:
- Financial management of the business
- Methods for gathering and recording financial data
- A decision made at a board meeting or meeting of owners
- Taking accountability and using management processes to stop and catch fraud
2. Compilation Engagement
With a compilation engagement, audit companies in Dubai help the management display the financial data that is already available using financial statements. But, there will be no guarantee of their accuracy, and there won’t be any significant adjustments made to ensure that the financial statements conform to national and international financial reporting standards.
A compilation involves a far smaller set of operations than a review engagement. This indicates that the audit firm in Dubai that was hired would generate a report that will not provide an opinion or assurance regarding the financial accounts.
A compilation consists of:
gaining a general understanding of the company, its accounting concepts, and financial reporting methods
presenting financial data in accordance with the standard financial reporting format
3. Audit Engagement
On the other hand, an audit engagement offers consumers of financial statements an opinion regarding whether the financial statements have been prepared in accordance with appropriate financial reporting standards. Users might have more faith in the company accounting when an audit engagement is finished by an independent audit firm in Dubai. Investors, lenders, and relevant authorities are all included.
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