- June 18, 2020
- Posted by: kgrnaudit
- Category: accounting, audit
Chartered Accountants in UAE
The accounting processes in any establishment is a necessary and imperative factor about the chartered accountants all over UAE are sought after for the legally liable and essential process of audit and finance accounting.
The financial statement of any company at any given time would reflect upon the growth pattern and potential risks that the company is faced with. The audit process is guided by the federal laws and the chartered accountants are liable to prepare the report in complete compliance with these issued guidelines as well as according to the International Standard for Financial Reporting. The auditors/Chartered Accountants are well versed and professionally trained to identify irregularities in financial records and have the acquaintance with all advancement and methods to improve the monetary horizons in which the establishment exists.
The submission of audit reports of the mainland incorporations is mandatory, therefore the annual audits have to be over within 3-6 months from the close of financial years.
The Free Zone Companies and Free zone Companies are exempted from obligatory submission of the audit report but are liable to conduct the audit and appoint auditors and chartered accountants approved by the free zone authorities for the external audit.
The UAE Commercial Company Law governs various aspects of this process and delivers the guidelines to be followed by them.
Practice and Application:
The chartered accountants are entrusted with the job of assessing the financial records complying with regulations and recognize and isolate cases of incongruities. Dubai, Abu Dhabi, and Sharjah are the core source of multiple investing economies in the UAE, and there are well-established Chartered Accountants in UAE within these jurisdictions with a proficient team of chartered accountants to provide invaluable service to the establishments in these zones.
The estimated period of an audit may vary from 30 to 90 days, depending on factors like an expanse, strategy, and record availability.
The companies must maintain their financial records for a minimum period of 5 years.
The external audits begin after the end of the financial year while internal audits are a continuous process. The establishments must appoint a skilled and proficient chartered accountant for the internal audits which will reduce the number of financial irregularities at the end of the market year.
The external/statutory audit dates are issued beforehand and the process begins with the strategy discussion which will involve the consultation from the firm’s professional auditors, internal auditor, and the company officials.
The CA firm must be updated on the establishment’s controls to evaluate the efficiency of the same. The test of controls is one of the preliminary variables accounted for in the process.
The auditors will request for the documentation to be submitted which by default also includes the previous audit reports.
The list would include receipts, invoices, expenditure records, records of tangible assets, tax duties, tax returns, etc. The mentioned documents are inclusive of both the debits and credits acquired by the company.
Any processes that are not part of the mainstream industry and yet functions under the records of the company must be specified. The auditors must be completely aware of all the undertakings of the establishments and the corresponding expenditures and profits incurred by the enterprise.
The major concern is to eliminate and eradicate frauds; and tax frauds are gravely injurious to the company’s reputation and may lead to unsolicited penalties, in some cases termination of the business license may be on the table.
The recalculation and assessment process conducted by the chartered accountants will retrace the source of the anomalies and eliminate future threats.
The risk assessment conducted by the auditors will reveal the current and future market stature of the establishment in concern. The solutions to these problems are also invariably provided by the appointed chartered accountants and also help with the process of implementation.✔The audit report delivered at the end of the audit is a documented record of the establishment’s complete financial year effect. A good audit report will be the source to lure investors and bankers to fund the enterprise’s endeavor.
The reputation among legal authorities can also be maintained only compliance with decrees and a clean financial statement which shall be acknowledged surefire from the submitted and upheld audit reports.
Chartered Accountant Firms in UAE :
Auditing services are very prevalent in the UAE and authorized Chartered Accountant firms are helping business expand their skylines to higher monetary stabilities. The emirates in UAE are distinct and bestowed with the considerably varying decree and guiding principle in each jurisdiction. The established CA firms are aware of the necessities for each different jurisdiction and provide services accordingly. The services are variedly unique even considering the differences between the mainland, offshore, and free-zone endeavors. The core duties of an auditor include:
- Warrant compliance of the financial records to the issued policies and laws.
- To conduct a thorough assessment of assets, resources, and liabilities.
- File an authentic and reliable audit report accounting for the company’s endeavor.
- Deliver recommendations for the advancement of the establishment and eliminate possible threats within the organization.
KGRN Audit Firm is one of the most well established chartered accountant firms within the jurisdictions of Dubai, Sharjah, and Abu Dhabi. The firms help the companies which are mainland incorporations as well as the free zone endeavors.
The decrees have significant and relative variations in all these jurisdictions but the audit firms are well assured to be aware and prominently implementing all necessary procedures to provide the most efficient service.
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