The registered audit firms in the Dubai Airport Free Zone are required to audit the books of accounts of all businesses operating there. Audit organisations that are not registered with the Dubai Airport Free Zone Authority (DAFZA) are not permitted to carry out audits, liquidations, or offer any other services to businesses that hold DAFZA licences. It’s also vital to remember that both Free Zone Establishment (FZE) and Free Zone Businesses must undergo the audits (FZCO). The purpose of this criterion is to guarantee that the registered businesses abide by national and international laws such the International Financial Reporting Standards (IFRS) and Anti-Money Laundering (AML).
Information on Dubai Airport Free Zone Authority (DAFZA)
Dubai Airport Free Zone was formed by the Dubai government in accordance with law No. 2 in 1996 and is situated across from Dubai International Airport. The DAFZA was established with the goal of realizing the UAE Government’s plan for an investment-driven economy, and it currently houses about 1600 businesses from across the globe operating in a range of industries, including aviation, engineering, telecommunications, etc. The $272 billion in foreign trade that Dubai does is significantly influenced by DAFZA. In the first nine months of 2019, DAFZA was responsible for 12% of Dubai’s exports. DAFZA is a desirable location for international investors due to its close proximity to Dubai International Airport, which connects more than 220 destinations on all six continents with over 150 airlines.
Why Is DAFZA’s Authorized Auditors’ Audit Required?
Companies registered with DAFZA are required to employ an authorised auditor to review and provide a report on the accounts prepared in line with national and international legislation. In order to ensure that the corporations are not engaging in money laundering, the auditor’s report must declare whether the company’s financial statements adhere to International Financial Reporting Standards (IFRS).
The registered auditor in DAFZA is required to ensure that the books of accounts are accurate and complete, that no transaction is left unrecorded, that the accounts present a true and fair view of the company’s affairs at the end of the financial year, and that there are no material misstatements in the books of accounts. Additionally, the auditor must note in his report that the business has only engaged in activities that are allowed under its business licence. While deciding whether to renew a trading licence, the authorities mainly depend on the auditor’s findings.
To determine if the business has kept accurate and full records as required by the Ministry of Finance and Federal Tax authorities, the DAFZA licenced auditor must conduct investigations (FTA). Additionally, the auditor must make sure that the company’s accounts are consistent with VAT regulations and match up with its accounting records and returns. Depending on their reputation and experience, the businesses operating in DAFZA can select the best DAFZA approved auditors. As per FTA, DAFZA has been classified as a free zone.
Services
- Accounting and Assurance
- Bookkeeping & Accounting VAT Consulting
- Reporting of Economic Substances and AML Consultancy
- Registration of trademarks and company liquidations
What should businesses do to prepare and maintain their accounting records for auditing?
In order to adequately explain the transactions, the companies must maintain accounting records that include supporting documentation. The documents must accurately and fairly disclose the company’s financial situation. The financial condition and profit and loss for the particular year must be fairly represented in the accounting records, which must also be in accordance with IFRS and FTA.
DAFZA auditing services
The Dubai Airport Free Zone Authority (DAFZA) Authorized list of Auditors or DAFZA approved auditors must be used by all businesses operating in the Dubai Airport Free Zone to select their auditor. In the UAE, one of the best auditing and accounting firms is KGRN Chartered Accountants. The Dubai Airport Free Zone Authority has KGRN’s registration information. The accounts of both FZE and FZCO enterprises operating in DAFZA are analysed and reported on by certified chartered accountants at KGRN. In order to ensure that the company’s financial statements are accurate and in compliance with local and international regulations, such as IFRS, Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT), KGRN auditors also offer companies a true and fair opinion on their financial condition (CFT).
Documents Necessary for the DAFZA Authorized Auditors to Do the Audit
The DAFZA approved auditors request the relevant year’s documents from the companies in order to conduct the audit and assurance. This makes it easier for the auditor to formulate an opinion on the financial position by reviewing the year-end financial statements in order to meet regulatory requirements. The following paperwork is needed from the businesses:
- Account Statements
- For all financial transactions, credit/debit confirmation is required.
- Bills and invoice copies
- Association Memorandum (MoA)
- governing documents (AOA)
- recent registrations for trade licences VAT and Excise Tax Information (If Applicable)
- Accounting Books
Contact us at @ +971 45 570 204 / Email Us : [email protected], and one of our DAFZA approved auditors will provide you with a free one-hour consultation.
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