The abbreviation DMCC stands for Dubai Multi Commodities Centre. It is one of the largest and best-known free zones in the UAE. It is located in the Jumeirah Lakes Towers area of Dubai. More than 14,000 enterprises call DMCC home. Its scope extends beyond commodity-related activities. Even if your company operates in different industries, you can discover a business activity that suits it: IT, consulting, investment, petroleum, engineering, events, and so on. This blog will tell you about DMCC-approved auditors and how they may assist you with auditing your DMCC enterprises.
Is Audit Mandatory for Companies in DMCC?
DMCC provides a number of advantages when it comes to establishing a business, including various types of licenses, flexible office structures, and simple business setup procedures. However, businesses in the DMCC Free Zone must have their books of accounts audited by registered and approved auditors with the DMCC Authority.
Every DMCC Company is required to upload the Audited Financial Statements and Summary Sheet to the DMCC portal within 90 days of the end of the fiscal year. In some cases, the authority may grant a period extension.
The DMCC Authority may request additional documents at any time during the process, as well as the original documents, during inspection.
What will happen if DMCC companies are not subjected to audits?
If a company fails to submit financial statements audited by DMCC approved auditors within 90 days of the fiscal year end, it will face a fine under the DMCC Company Regulations. Furthermore, there is a risk of DMCC’s trade license not being renewed.
DMCC Regulations Regarding the Auditing of Companies
The Dubai Multi Commodities Centre Authority (DMCCA) Regulations No. 1 of 2020, which replaced DMCC Regulation No. 1 of 2013, state that the DMCC has enrolled Dubai auditors in the DMCC approved auditors list in accordance with the recently released Approved Auditors List Rules. According to the DMCC, the approved auditor’s list will ensure the highest quality audit services are provided to companies operating in the DMCC.
DMCC Approved Auditors
Registered audit firms with DMCC are those that have reputed chartered accountants, adhere to best practices and accounting standards of local and international reporting standards such as IFRS (International Financial Reporting Standards), and have a track record of conducting financial audits. DMCC ensures that the Audited Financial Statements represent the true and accurate financial position of the member companies by using the services of registered auditors in Dubai.
According to the DMCC website, the Approved Auditors List Rules also require all DMCC member companies to submit their Audited Financial Statements through a DMCC Approved Auditor, which will be phased in over time.
DMCC Auditing Procedure
The DMCC Free Zone has established regulations that require companies and company officials to work with DMCC approved auditors. Companies are not permitted to make a false, misleading, or deceptive statement to the auditor. Companies are not permitted to withhold certain information from auditors or to destroy or conceal documents.
How to appoint DMCC approved auditors?
A company may appoint auditors to examine and report on the accounts prepared in accordance with the DMCC regulations. A company may also appoint an auditor solely to report on its financial statements rather than on a general retainer basis.
According to DMCC regulations, the company must appoint its auditor at a General Meeting. An auditor must be registered by DMCCA as an approved auditor in accordance with the approved auditor guidelines periodically published by DMCCA.
DMCC approved auditors’ duties and responsibilities
In DMCC, a company’s auditor is required to conduct investigations to determine whether the company has kept proper accounts. The DMCC approved auditors must ensure that the company’s accounts are in accordance with the accounting records and returns, and that the firm’s accounts comply with IFRS. The audit firm should ensure that the company follows AML and CFT guidelines while conducting business. If the client is involved in money laundering activities, it is necessary to report this.
What documents must be kept for audit purposes?
The following is a list of documents that must be kept and submitted to auditors.
- Legal documents include the Memorandum of Association (MOA), Articles of Association (AOA), a copy of the trade license, a share certificate, a certificate of incorporation, a tenancy contract, and so on.
- Bank statements and bank confirmations
- Confirmation of balances from debtors, creditors, and third parties (as per the samples given by the auditors).
- Deposit statements from the DMCC portal, copies of ledgers, sales invoices, purchase bills, expense bills, and so on.
- Complete set of accounting books, trail balance, and so on.
- Other information that the auditor deems necessary.
Why KGRN for Audit in DMCC?
KGRN Chartered Accountants is a leading auditing firm in Dubai, UAE, and is on the DMCC’s approved auditors list.
Our expert auditors will examine your DMCC Free Zone Company’s accounts and verify financial statements using supporting documentation. Our DMCC approved auditors will assist you in identifying the risks associated with business operations. As a leading auditing firm, we provide the services of our experienced chartered accountants to help your company’s corporate governance practices improve and add value.
For enquires call @ +971 45 570 204 / Email Us : [email protected]
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