The Dubai International Financial Centre (DIFC) Free Zone is located in the city’s financial centre. More than 25,600 professionals operating across more than 2,500 active registered firms comprise the region’s broad pool of industry talent, and DIFC is a globally known, independent regulator with a tested judicial system.
They supply:
- Inexpensive licencing
- Adjustable regulation
- Fresh accelerator programmes
- Funding for start-ups in their growing stages
The Dubai International Financial Centre (DIFC) Free Zone is located in the city’s financial centre. More than 25,600 professionals operating across more than 2,500 active registered firms comprise the region’s broad pool of industry talent, and DIFC is a globally recognised, independent regulator with a tested judicial system. They offer finance for growth-stage start-ups as well as flexible regulation, cost-effective licencing, and accelerator programmes that are cutting edge.
The DIFC Approved Auditors programme aims to list auditors who can guarantee the most reliable audit services provided to DIFC member companies. Additionally, it stipulates that all DIFC member businesses must submit their audited financial statements via auditors who have been approved by the DIFC. They guarantee that the Financial Statements accurately reflect the state of the company’s finances.
Leading Authorized Auditors in DIFC
An audit company must be able to attest that it complies with the following minimal requirements in order to be accepted as an approved auditor in Dubai, Abu Dhabi, and Sharjah, UAE, and to be included on the approved auditor list:
- Fill out the “Fit & Proper” application.
- Provide specifics about the auditor’s background and experience.
- Include information on who owns the business, the other members of the organisation, and the available resources.
- Describe the professional indemnity insurance in detail, including how it can be used to pay for services done for unregulated DIFC entities.
- Create a statement detailing the resources, abilities, and credentials of the auditor.
- a copy of the Ministry of Economy’s audit report
- $500 is the proposed fee.
- Why is it necessary in DIFC to use approved auditors?
A firm that specialises in auditing and accounting is called KGRN Chartered Accountants. The team consists of qualified professionals with extensive international experience and experienced CPAs. The crew is fully knowledgeable about accounting software and operates for a fraction of the price of hiring a full-time professional.
To meet their needs, they assess the situation of the companies and employ a group of qualified Accountants. In Dubai, Abu Dhabi, and Sharjah, United Arab Emirates, KGRN is a firm of corporate detailers, auditors, tax experts, and financial analysts. It is functional, authorised, and well-structured.
- Perform audits in accordance with the requirements of International Standards on Auditing (ISA).
- Give customers good service in a timely manner.
- Ensure the social and economic growth of enterprises.
- Improve operating effectiveness internal control standards.
- Grant supervision and support for developing business strategies.
- By evaluating the risk, aid in ensuring the business is supported in making the right decision.
- Implementing VAT Compliance will help with VAT Return Filing, VAT Implementation, and VAT Registration.
- Provide Accounting & Bookkeeping services in Dubai, United Arab Emirates.
- Providing audit and assurance services.
Businesses operating in the financial free zone must submit audited books of accounts to the free zone administration four months after the end of their individual fiscal year. Businesses in the DIFC must submit an external audit report in order to renew their trading licences.
It is also crucial to note that enterprises cannot renew their business licences if they hire external auditing firms that are not registered with the DIFC Authority to conduct their audits.
The audit procedure gives the authorities reassurance that the businesses are operating legally and adhere to all requirements without engaging in any financial irregularities. The Dubai Financial Services Authority is in charge of overseeing businesses in the DIFC’s financial and other regulated industries (DFSA). The DIFC Authority is in charge of regulating the other unregulated businesses.
With regards to Dubai International Financial Center (DIFC)
In order to help financial companies enter and grow in the region’s expanding markets, the DIFC was founded as an international financial centre in 2004. In compliance with UAE Federal Decree No. 35 of 2004, the Dubai government established the DIFC to diversify the emirate’s economic resources and draw in more foreign investment. Inside the UAE, the DIFC is a separate jurisdiction with its own set of laws and regulations. The DIFC is home to a large number of financial and non-financial businesses that target industries such
- professional services in banking
- worldwide businesses
- Insurance
- Financial management
- monetary markets
The DIFC has a special legal system governing civil and commercial rules, which sets it apart from other free zones. The DIFC is an independent entity with a separate legal system that adheres to English common law. All civil and commercial disputes involving businesses with a DIFC registration must be resolved by THE DIFC Courts only.
Services
- Accounting and Assurance
- Bookkeeping & Accounting VAT Consulting
- Reporting of Economic Substances and AML Consultancy
- Registration of trademarks and company liquidations
Why Is an Authorized Audit Required in the DIFC?
The DIFC Authority must receive the audit reports from the businesses operating there within four months of the end of their respective fiscal years. Companies that fail to submit the audit report and the audited financial accounts will suffer sanctions including having their trade licence not renewed.
Companies can avoid such regulatory measures by hiring the top auditing firms in Dubai, United Arab Emirates (that are listed with the DIFC Authority).
The company’s books of accounts must be created in accordance with national and international legislation, including IFRS and DIFC regulations, according to analysis and reporting requirements from the auditor registered with the DIFC Authority. If the company’s records give a truthful and fair perspective of its financial statements and are free from serious errors, that information should be stated in the auditor’s report as well.
The DIFC has mandated that the businesses it has granted licences to only engage in the precise commercial activities covered by the trade licence. If the businesses are engaging in any other actions that are against this rule, it should be disclosed in the auditor’s report.
What should businesses do to prepare and maintain their accounting records for auditing?
It is a requirement for businesses operating in the DIFC to keep proper books of accounts that reflect their financial situation. To ensure that the company’s balance sheet and profit and loss statements are created in accordance with International Financial Reporting Standards, the directors must maintain the books of accounts properly (IFRS).
A record of must be kept in the books of accounts.
assets and obligations of the business
daily entries for every dollar earned and spent
Issues that required receipt and expenditure
The company’s registered office is where the books of accounts must be kept and kept open for examination in accordance with DIFC laws. There would be severe repercussions if you didn’t follow these rules.
DIFC’s auditing services
Dubai’s DIFC is an autonomous financial free zone with its own independent laws and rules. The laws of the DIFC are among the most complex, and businesses are compelled to abide by them, including the obligatory need of having their books of accounts audited. By helping businesses comply with local and international rules, getting their books of accounts audited will help them look more credible in the eyes of stakeholders, the government, lenders, and other authorities. The audit services of KGRN Chartered Accountants are beneficial to businesses because it is required that enterprises have their books of accounts audited by DIFC approved auditors. Financial and regulatory businesses are separated from other unregulated businesses for which KGRN is registered auditors in the DIFC by the DFSA. By abiding by all rules, KGRN can guarantee that its clients can operate their businesses worry-free.
Documents Needed for the Audit by the Authorized Auditors of the DIFC
The companies are required to provide the auditors with the documents related to the relevant year in order to conduct the audit and assurance. This makes it easier for the auditor to perform their duties, which include analysing the financial statements at year’s end to come up with an opinion on the financial position that complies with regulations. The following paperwork is needed from the businesses:
- Association Memorandum (MoA)
- governing documents (AOA)
- Trial balance, balance sheet, and profit and loss statement registration for the most recent trade licence VAT and Excise Tax Information (If Applicable)
- Accounting Books
- Plans for audits (Fixed Assets Register, Ageing of Accounts receivable & payable with provision for bad debts, accruals, etc.)
- Information on closing stock and work-in-progress at the end of the year
- With the appropriate supporting information, details of fixed asset additions and disposals during the year
- Bills and invoice copies
We provide the best services to the management as DIFC approved auditors. Contact us at @ +971 45 570 204 / Email Us : [email protected], and one of our auditors in DIFC will provide you with a free one-hour consultation.
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