About Audit Services
Auditors provide an independent assessment as to the ‘truth and fairness’ of financial statements. To give a ‘true and fair’ view, financial statements must not be materially misstated and must be prepared, in all material respects, in accordance with accounting standards and legal requirements.
Having your financial statements verified by an external auditor enhances the reliability of the financial statements that are produced by the management of a company and provides more credibility in the business marketplace. Providing audited accounts offers assurance to shareholders, lenders, creditors and potential investors, making you more likely to be successful in achieving your goals.
Under the UAE Federal Commercial Companies Law, it is mandatory for all Mainland companies to have their financial accounts audited on an annual basis by a licensed auditor. Annual audited financials are also mandatory for more than 30 Free Zone licensing authorities and more authorities are expected to follow suit.
The majority of UAE companies, both Mainland and Free Zone, have their financial year-end on 31 December. The first audit report can be prepared for any period between six months and 18 months, to be calculated from the date of registration of the company, and subsequently for periods of 12 months.
Some Free Zone authorities require companies to submit a copy of the annual audited accounts to them within three to six months of company’s financial year-end, while others may require such reports to be submitted at the time of renewal of trading licence. Failure to submit audit reports within the deadline may result in penalties and companies even run the risk of the non-renewal of their trading licence.
Other key reasons to ensure that an annual audit report is undertaken by companies in the UAE are as follows:
UAE companies are required to maintain their records for a minimum of five years. The set of documents required to undertake an audit includes but is not limited to:
The audit of an entity can only be carried out by an independent auditor who is registered and approved by the regulatory authority of that entity.
Sovereign Corporate Services works with carefully vetted local and international audit firms and will match our clients to an audit firm according to the particular requirements and budget of the business. We can also provide full support during the audit process by liaising with auditors, preparing necessary schedules, confirmation letters and answering queries on behalf of clients. Our team of qualified accountants can also provide bookkeeping services and assist you to bring your books up to date for audit purposes.
If you require any further information or assistance, please contact Sovereign Corporate Services at accountingdxb@sovereigngroup.com
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Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
