Article image: Accounting and audit for companies in the UAE

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All legal relations between local and federal authorities are stipulated in the constitution of the UAE Full version

The need for accounting and audit is what all businesses face when doing business in different parts of the world. Accounting and audit are mandatory in countries with direct taxation. The UAE is not among such states, since there are no corporate income tax and corporate tax, just as the tax on imports and exports on the territory of free economic zones. However, an audit in Dubai is more than desirable, and in some cases — mandatory, as it is an excellent opportunity to check the financial performance of the company. In addition, with the introduction of VAT from the beginning of 2018, all companies that are subject to VAT reporting requirements must do an audit.

The audit of the company in the UAE is completely confidential. Information obtained during the audit will be available only to those persons who are authorized to obtain it. These include the authorities of free economic zones, which can request an audit opinion for renewal of the license, UAE banks and representatives of the court during litigation or litigation, as well as the Ministry of Finance of the UAE.

The audit of the company in the UAE can be carried out by a specially hired qualified professional. The auditor will be able to conduct an objective and comprehensive assessment of the company's financial affairs, as a result of which an audit report will be issued. The auditor vouches for the safety and non-disclosure of the information received. At the moment, there are about 700 audit organizations in the UAE, the services of which you can avail.

Audit companies in Dubai, United Arab Emirates

Audit in Dubai and other UAE emirates is necessary for all local non-freezone companies. Also, it is mandatory for most companies on the territory of free economic zones and branches of companies in the UAE. Entrepreneurs have to pay due attention to timely accounting and auditing in the UAE.

The audit of the company in Dubai is the systematic study of the data and financial activities of the company. The auditor helps the company to find whether all operations and transactions conducted by the enterprise correspond to the intended purpose. Checking the company in Dubai helps the company to make sure that there are no significant errors.

Providing an audit report is also mandatory if you are planning to take a corporate loan. Audit in the UAE is presented by the financial and operational audit. In the latter case, the effective use of resources is checked. The audit should be conducted by an independent licensed organization, and its results should be presented in the annual report.

The audit of the company in the UAE results in a report that includes a statement of financial position, a statement of income, a statement of changes in equity and a statement of cash flows. Checking the company in Dubai and a clear understanding of its status and performance ensures its continued prosperity and growth.

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