Audit

Audit services in the UAE provide independent examination of financial statements to verify accuracy, compliance with accounting standards, and adherence to regulatory requirements established by federal and local authorities. Statutory audits are mandatory for many businesses under UAE Commercial Companies Law and specific free zone regulations. Mainland companies with annual revenue exceeding AED 50 million, public joint stock companies, businesses seeking bank loans or credit facilities, companies undergoing mergers or acquisitions, and most free zone companies require annual statutory audits. The UAE follows International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA), with specific regulations varying by jurisdiction and industry-specific guidelines where applicable throughout the Emirates.

Our comprehensive audit and assurance services cover all aspects of financial verification, compliance assessment, and business advisory for UAE entities across all jurisdictions. Statutory financial audits include examination of annual financial statements, verification of accounting records and transactions, assessment of internal controls, compliance with IFRS and local regulations, independent auditor’s opinion, and management letter with recommendations. Internal audits focus on reviewing internal control systems, operational efficiency assessment, risk management evaluation, process improvement recommendations, fraud detection procedures, and compliance monitoring. Due diligence audits provide pre-acquisition financial review, asset and liability verification, risk identification and assessment, valuation support, deal structuring advisory, and post-merger integration audit services for businesses undergoing transactions.

Comprehensive documentation ensures efficient audit execution and provides auditors with necessary evidence to form opinions on financial statements and compliance status. Financial records required include trial balance and general ledger, bank statements and reconciliations, cash book and petty cash records, accounts receivable and payable aging, fixed asset register, and inventory records with valuation. Legal and corporate documents encompass trade license and amendments, Memorandum and Articles of Association, certificate of incorporation, shareholder agreements, board meeting minutes, and authorization letters for signatories. Supporting documentation covers sales and purchase invoices, contracts and agreements, payroll records, employment contracts, loan agreements, financing documents, insurance policies, rental agreements, and VAT and tax returns filed with authorities.

Professional audit services deliver value far beyond regulatory compliance, providing strategic insights and enhancing business credibility with stakeholders across multiple dimensions. Regulatory compliance benefits include meeting statutory audit requirements, avoiding penalties and legal consequences, maintaining good standing with authorities, fulfilling license renewal conditions, and satisfying bank and creditor requirements. Financial accuracy advantages encompass identifying errors and misstatements, verifying accounting treatment correctness, ensuring proper asset valuation, confirming liability completeness, and validating revenue recognition practices. Stakeholder confidence improvements include enhancing credibility with investors, strengthening lender relationships, building supplier and customer trust, supporting shareholder decision-making, and facilitating business partnerships for growth and expansion opportunities in competitive markets.

Audit requirements and regulatory frameworks vary significantly across UAE jurisdictions, affecting compliance obligations and audit scope for different business entities. Dubai mainland companies are governed by UAE Commercial Companies Law with audit mandatory for revenue above AED 50 million under Ministry of Economy oversight requiring IFRS compliance. Dubai free zones including DMCC, JAFZA, and DAFZA each have specific audit requirements with some requiring annual audit regardless of revenue, following IFRS or jurisdiction-specific standards with free zone authority approval for auditors. DIFC entities face DFSA regulations with mandatory audit for all entities, IFRS as adopted by DIFC, DFSA-registered auditor requirement, and enhanced reporting with additional regulatory filings. ADGM follows FSRA regulations with mandatory annual audit, international accounting standards, and comprehensive compliance reporting requirements.

Our structured audit approach ensures thorough examination, timely completion, and valuable insights for business improvement and compliance with regulatory requirements. Audit planning involves understanding business operations, assessing risks, determining materiality levels, and developing comprehensive audit strategy and timeline with client coordination. Document request phase includes issuing detailed document checklist, coordinating with client team, establishing communication protocols, and setting up secure document sharing systems. Fieldwork execution encompasses performing substantive testing, verifying transactions, reviewing internal controls, conducting physical inspections, and documenting audit evidence systematically. Analytics and testing phase applies analytical procedures, tests account balances, verifies related party transactions, assesses going concern assumptions, and evaluates contingencies. Findings discussion presents preliminary findings to management, discusses adjustments, resolves queries, and obtains management representations before final report issuance.