An audit is a formal and systematic examination of a company’s financial records, including transactions, investments, and tax filings, to detect any anomalies, errors, or instances of noncompliance. In a fast-paced financial climate like Dubai, audit services are critical in maintaining transparency, accountability, and regulatory compliance across organisations of all sizes.
Audit services in Dubai have two purposes: they help regulatory authorities detect illegal financial practices like currency hoarding, and they help businesses find internal inefficiencies, mismanagement, or even fraud. Companies that address these concerns early can preserve their assets, strengthen governance, and promote long-term success.
The implementation of Value Added Tax (VAT) on January 1st, 2018, marked a dramatic shift in the UAE’s financial landscape. Businesses are now under increased scrutiny from authorities, necessitating regular audits to maintain VAT compliance and avoid significant legal fines. Accurate financial reporting is now more vital than ever, especially since the Federal Tax Authority (FTA) enforces strict requirements under the Tax Procedures Law (Federal Decree-Law No. 7).
Dubai continues to attract a large number of global corporations and investors due to its strategic position, world-class infrastructure, and pro-business legislation. As a result, the need for dependable audit services has increased significantly. Auditing services in Dubai not only guarantee that businesses comply with FTA laws, but they also provide strategic insights by detecting financial inefficiencies and encouraging internal controls.
Auditors in Dubai assist firms in maintaining correct records, instilling stakeholder confidence, and eliminating financial malpractices by performing both internal and external audits. This clean financial slate not only reduces risk, but also opens the door for future growth and investment.
In conclusion, audit services in Dubai are critical for any company seeking to maintain financial integrity, ensure legal compliance, and achieve long-term success in the region’s highly competitive economic environment.
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Documents Required for an Audit:
As per the Federal Decree-Law, Article 78, the FTA has guidelines regarding the maintaining of fiscal records. During an audit, these reports and guidelines play an integral role. These given documents are to check the company’s financial incongruities and to find tax frauds if any.
- Tax invoices of all the merchandise and facilities used by the company including imports and financial documentation of the raw materials if acquired.
- Credit Notes of taxes of the company and documentation of the investment credits procured by the establishment.
- Invoices and billings issued by the company for the provided services.
- Credit Notes and documentation of investments undertaken by the company and respective monetary documentation.
- All financial data logs, ledgers, bank statements, and records of all transactions.
- Tax records for amenities used by the company that is not part of the official business practices and all other miscellaneous purchases under the company’s name.
- Archives of amenities procured by the establishment but had no Input-Tax withheld from the same.
- Documentation and records of all the exports undertaken by the company.
- Documentation of rectifications and changes made to tax invoices and financial accounts.
The FTA or the audit services conducting the audit may demand any other documentation depending on the requirements. In case any discrepancy comes up, the authorities can ask for further documentation. Any document that indirectly or directly affects the monetary integrity of the establishment can come into the proceedings.
For enquiries call @ +971 45 570 204 / Email Us : [email protected]
Procedure:
The notification for an FTA audit usually comes out five days prior to the actual audit. They may issue the guidance for an external audit, the report of which has to be submitted.
The establishment may also consult an auditing firm for the audit at regular intervals to maintain clean records. However, the firm and the authority can work together to negotiate a date for such an audit.
- Once the establishment fixes a date, it must be ready with the required supporting documents.
- As per the client’s requirements, the audit firm comes up with a personalised audit strategy. Such audit services take into consideration the necessities of the client and a workshop regarding the same helps finalise the plan.
- The firm must also provide previous audit reports to help the ongoing audit process get an idea of the existing financial environment.
- Test of Controls may be performed to make sure proper alignment of the records and ensuring the companies’ management protocols are effective.
- The appointed auditor squares the returns and to avoid any predicament the companies may conduct their audits disjointedly for filing tax at the appropriate period.
- The aforementioned documents required for the audit are verified and calculations are prompted for verification.
- If any anomalies are noted they are produced in the Audit report.
- If FTA carries out a statutory audit, the reports are submitted to the tax authorities and penalties are issued if discrepancies are found.
- The external audit carried out by the audit firms will help the establishment to avoid such inconsistencies and consultation is initiated once the audit report is complete which shall discuss the company’s prospects for improvement.
For enquiries call @ +971 45 570 204 / Email Us : [email protected]
Audit Report:
The Audit report is issued to the concerned establishment after the audit. Furthermore, the audit firm withholds a copy for future consultation.
An Audit Report will also be useful in future audits and also to provide the legal authorities for verification. The report mentions all the findings and also is a source to find suitable remedies for mismanagements if found.
New investors frequently ask for such a report before they contribute their monetary funding to the company. The report acts as a certification of the company’s legitimacy and the viability of investment in the establishment.
For enquiries call @ +971 45 570 204 / Email Us : [email protected]
Audit Services in Dubai:
KGRN is one of the leading auditing services in the UAE with an established presence in Dubai. The firm’s reports and audit services have a lot of credibility with banks and establishments throughout the UAE.
With highly trained auditors and tax consultants, the service of the firm helps companies reach greater financial accreditation. The firm also assures quality performances and services in their expanding commercial horizon.
The clients can avail of the services of external audits which utilise certified professionals of KGRN auditing firm. These highly-qualified professionals will ensure a healthy record for your establishment.
For enquiries call @ +971 45 570 204 / Email Us : [email protected]
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