An audit is essentially an official examination of an establishment’s financial records, which include all transactions, investments, tax returns, and so on, to look for anomalies and discrepancies. Audit services assist the government in identifying illegal currency hoarding while also assisting the establishment in identifying internal mismanagement and embezzlement that can be corrected for the company’s benefit.
On January 1st, 2018, Value Added Tax (VAT) came into effect in the UAE and had varying impacts at the establishments and the consumers. This also escalated the need for audits to avoid any legal activity against the establishment.
Audit services are, therefore, of utmost importance as they help organizations keep their financial records intact and free of anomalies.
Dubai serves to be the gold mine for international investors in UAE and therefore holds various organizations within its geographical expanse. Auditing services in Dubai are helping these establishments with their monetary integrity and are also contributing towards the growth of these companies by eliminating all malpractices within the organization and ensuring a clean financial record for expanding the horizon of the company’s progress.
Federal Tax Authority sets the guidelines for taxation and ensures compliance with the existing laws. The audit services help in internal audits and external when necessary and guarantee that the financial records of the given organizations are devoid of any anomaly and are in complete harmony with the FTA’s guidelines and thus eliminates legal deterrents.
The Tax Procedures Law, (Federal Decree-Law no. 7), issued by the Ministry of Finance defines and establishes the purpose of an audit.
For enquiries call @ +971 45 570 204 / Email Us : [email protected]
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]
Related Posts
Top Audit Firms in Dubai, UAE 2023
Chartered accountant firms in Dubai
Bookkeeping and accounting firms in Dubai
Accounting and bookkeeping services in Dubai
Economic substance regulation UAE
Tag: top audit firms dubai, audit firms in dubai list, audit firms hiring in dubai, audit firms in business bay dubai, best audit firms in dubai, ca firms in dubai, audit firms in dubai, audit company in dubai, leading audit firms in dubai, small audit firms in dubai
