Businesses operating in the UAE, must comply with a well-managed legislative process aimed at promoting transparency, financial standards, and compliance. To maintain a well-run system of regulation, businesses in all sectors are subject to different types of audit requirements. Depending on the need of your business, audit services are important, not just for compliance, but to cement stakeholder trust and support your business for the long run.
The UAE has gradually initiated a series of financial and tax regulations, and the recent introduction of VAT and Corporate Tax will only increase the need for proper financial reporting. Businesses in Dubai and the Emirates have to understand the different types of audit services are needed to operate legally and effectively.
Statutory Audit
For most companies, a statutory audit is a requirement. Under the UAE Commercial Companies Law, entities will have to maintain accurate financial records and submit them on a yearly basis audited by a registered audit firm; This applies to all mainland companies. Free zone companies will likely also need to submit an audited financial statement, depending on the free zone authority’s rules.
Companies are required to have their statutory audits by law, which verify the accuracy and honesty of a company’s financial statements, and demonstrate the business’ desire for transparency.
Internal Audit
An internal audit is intended to evaluate a company’s internal controls, risk management processes, and operating efficiency. While it is not a requirement for companies to conduct an internal audit, for companies that want to improve internal controls, and lessen the risk of fraud or mismanagement, internal audit services are highly advised.
An internal audit will give management a complete understanding of how effective their operations are and how well they are following their internal policies. For any business that continues to grow primarily in health care, real estate, or finance, conducting an internal audit improves the ability to identify your risks before they become challenges.
VAT Audit
When VAT was introduced in the UAE in 2018, any company with taxable supplies that were above the taxable supply threshold was required to register for VAT in the UAE, and subsequently maintain accurate records of the companies transactions. VAT Audit is mandatory in order to comply with the Federal Tax Authority (FTA).
A VAT audit normally provides assurance that the company is collecting the appropriate rates of VAT, accurately filing their returns on time, and that their businesses have accurate VAT records. A VAT audit can save you more time, headaches, and trouble.
External Audit
An external audit is undertaken by an independent third party that examines the company’s financial statements and reports on their accuracy. External audits are normally required by banks, investors and governmental bodies to ensure that they are not only transparent in their financial reporting, but are also complying with international accounting standards.
External audits provide an accurate and simplified view of the overall financial condition of the business, which can strategically inform business decisions. A study undertaken in Dubai, many businesses are more likely to turn to audit services in dubai to contend with the increased scrutiny from outside sources, improve their financing applications, or formalize their business relationships.
Compliance Audit
Compliance audits provide an evaluation of whether a business is complying with legislation and licensing requirements, as well as its own policies. Compliance audits ordinarily apply to anti-money laundering (AML), adherence to corporate governance polices and standards, health and safety compliance.
Compliance audits are vitally essential for businesses that are operating in multiple jurisdictions, as well as businesses that are generally subject to high levels of regulations in their industry. Compliance audits limit exposure to legal issues, fines and reputational damage. Given the regular changes in the regulatory landscape in the UAE, compliance audits give businesses the comfort
Audit Reporting Services
Comprehensive reports must be prepared after every audit to communicate findings, identify areas of concern, and recommend improvements. The audit reporting service is primarily important to internal decision makers and external stakeholders.
High quality audit reporting services present complex financial information in clear and actionable summaries. Companies use audit reports for internal reviews, or submission to government entities so these reports are of great importance in planning your business future. Companies often hire professional firms that offer audit reporting services to provide accuracy, completeness, and clarity to financial documents.
Why Choosing the Right Audit Partner Matters
With the number of audit types available (statutory, internal, VAT, external, compliance, to name a few) it is important for organizations in the UAE to engage with the proper auditors. The right audit firm will not only ensure compliance, but provide meaningful recommendations for enhancing business practices which may support financial practices and business improvement.
Especially in Dubai, where the pace of business is quick and aggressive, hire audit services in Dubai for peace of mind so your company remains compliant, transparent, and ready for the next opportunity.
Conclusion
When it comes to providing companies with reliable and bespoke audit services, SaConsultants is a preferred service provider. SaConsultants has experience in delivering all types of audit services to customers, including statutory audit, internal audit, VAT audit and audit reporting services to help businesses in the UAE remain compliant and to assist companies to build strength in their financial position.
Audit requirements in the UAE are a legal obligation as well as a strategic opportunity for companies looking to grow and have sustainability in a competitive landscape. Audit allows companies to provide reasonable assurance that they are operating effectively, transparently, and within the scope of law and regulation. Audit reporting services, in particular, are also valuable in that they assist management with data-driven decisions.
