- July 18, 2020
- Posted by: Dhivya Krishna
- Category: audit
We’ve come across the word free zone around. Yes! Free zones are legal entities for onshore companies in the UAE. As known, they are quite costly than offshore companies. There are numerous free zones in the UAE in which, the SAIF zone- the Sharjah Airport International Free zone is one of the outstanding free zones known worldwide for its worldwide businesses. The SAIF is a leading and feasible alternate option for businessmen. It came into force early back in the year 1995. It pledges with various work areas like trade, manufacturing units, media, Information Technology, etc. The SAIF supports nearly 5500+ companies across the globe.
The SAIF is self-governing. It means the free zone needs to deal only with the local agencies and local regulations. SAIF’s prime goal is to set the local regulations in a business-friendly manner.
Why SAIF? The SAIF is automatically been chosen prior to the other free zones. This is only because of the conventional supportive systems and their goals and objectives. The SAIF is well known for its substantial resources. All the unique features make SAIF a distinct one for all the entrepreneurs and businessmen.
Audit firms in SAIF:
The audit firm comes into the frame when the Saifzone license renewal becomes mandatory. The audit firms should mandatorily have qualified and professional auditors. The particular audit firm should be approved by the SAIF. After the approval, the audit firm can send external auditors to the companies. The audit firm examines the company and delivers a detailed report about the company’s financial statements. Later, the company pays the audit firm.
In the year 2014, the UAE laws were revised so that the listed auditors of saifzone become stricter and the auditing becomes transparent and honest. After every four years, the company must change its appointment to the audit firms.
When should the audit reports be submitted?
As per the MOA- Memorandum of Association, 90 days before the end of the financial year, all the final reports along with the signed statements should be submitted. Later, the company needs to submit its financial statements.
Why is auditing important in the Saif free zone?
As we all know, the Saifzone is a promising zone to all the entrepreneurs and businessmen. In order to maintain a neat profile, the SAIF needs to appoint qualified auditors for their company. Since this process is quite crucial, well-experienced listed auditors in saifzone must be appointed. In case,the statements are not submitted, it may even lead to the failure of the Saifzone license renewal. To avoid all such drawbacks, the company must appoint the best auditing firms in the country.
What are the duties of the auditors?
- The listed auditors of saifzone need to examine and verify the account books of the company in compliance with local and international regulations
- The saifzone approved auditors will need to see if the accounts are prepared in accordance with all regulations
- The saifzone approved auditors must make sure if the company’s statements are fair
- The listed auditors of saifzone should check if the company is performing the activities which are stated in the trade license only. If not, the auditor must report it.
Documentations required by the auditors to conduct auditing in Saifzone:
- Trade license (recent)
- Account book
- Bills and invoices (copies)
- MOA- Memorandum of Association
- AOA-Articles of Association
- Profit and loss statement sheet, balance sheet and the trial balance statement
- VAT registration details along with excise tax, if any.
- Schedules of audits including the accruals, accounts received and payable, assets registered, etc
- Year-end financial statements and stock details
How should the company be prepared for an audit?
The companies in the Saifzone must have their financial books or account books with valid and accurate details. This will make the directors seem clear about the company’s financial positions. Furthermore, it helps ensure that all reports, statements and details comply with the IFRS- International
The audit record must include the following:
- The company’s liabilities and assets
- All receipts and expenditures list
- Every day’s entries of all the investments and money received.
The company must maintain all its records in the registered office within the Saifzone campus. Furthermore, representatives must have access to them so that lister auditors in saifzone can audit them anytime. The companies in the Saifzone can decide the first financial year based on the incorporation date mentioned in the Certificate of Incorporation.
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1. How long can the Saifzone visa be valid?
Saifzone visa is valid for 3 years for the owner. Whereas, the employers can hold their Saifzone visa for 2 years.
2. What is DAFZA?
The DAFZA is nothing but the Dubai Airport Free Zone Authority. It is one of the supreme free zones in the world.
For more info, please contact,
Gopu Rama Naidu, CPA FCA
Phone: +971 504 520648 | +971 455 70204