DIFC Approved Auditors

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The Dubai International Financial Centre (DIFC) is a renowned financial free zone in Dubai that has issued a mandate requiring companies operating within its jurisdiction to have their financial records audited by DIFC Approved Auditors in UAE. These companies must undergo this auditing process and submit their audit reports to the DIFC Authority within four months of their fiscal year’s end. Compliance with this requirement is essential for renewing their trade licenses. It’s crucial to note that companies cannot engage external auditing firms not registered with the DIFC Authority for this purpose. This audit process serves to assure authorities that companies are adhering to financial regulations and are not involved in any financial irregularities.
In the DIFC, financial and other regulated sectors’ companies are overseen by the Dubai Financial Services Authority (DFSA), while non-regulated companies fall under the jurisdiction of the DIFC Authority.

Choose Elevate as DIFC Approved Auditors Registered Audit Firms in DIFC for Auditing

To conduct an audit, auditors typically request relevant documents from companies for the year under review. These documents facilitate the audit process and include:
  • Memorandum of Association (MoA).
  • Articles of Association (AOA).
  • Latest Trade License.
  • Trial Balance, Balance Sheet, Profit & Loss Statement.
  • VAT and Excise Tax Registration Details (if applicable).
  • Books of Accounts.
  • Audit schedules (e.g., Fixed Assets Register, Aging of Accounts Receivable & Payable with provision for bad debts, accruals, etc.).
  • Details of closing stock and work-in-progress at year-end.
  • Details of fixed asset additions and disposals during the year with proper supporting documentation.
  • Copies of bills and invoices.

How Companies Should Prepare and Maintain Accounting Records for Auditing?

Companies operating within the DIFC must maintain accurate accounting records that reflect their financial position. Properly maintained accounting books are essential for ensuring compliance with International Financial Reporting Standards (IFRS). These records should include:

  • Assets and liabilities of the company.
  • Day-to-day entries of all income and expenses.
  • Documentation explaining the reasons for income and expenditure.

According to DIFC regulations, these accounting records must be kept at the company’s registered office and be open to inspection. Failure to comply with these regulations can result in substantial penalties.

Why Auditing is Mandatory from Approved Auditors in DIFC?

It is mandatory for DIFC companies to submit their audit reports to the DIFC Authority within four months of their fiscal year’s end. Failure to do so can lead to the non-renewal of their trade licenses. Engaging DIFC registered auditors is necessary for ensuring compliance with local and international regulations, such as IFRS and DIFC regulations. The auditor’s report should confirm that the company’s financial statements provide a true and fair view and are free from material misstatements. Furthermore, it should verify that the company is only engaged in activities permitted by its trade license and not in violation of DIFC regulations.

Choose Elevate as DIFC Approved Auditors

The DIFC operates as an autonomous financial free zone with its legal framework and regulations. Companies must adhere to these regulations, including the mandatory requirement for auditing their financial records. This not only enhances their credibility with stakeholders, government bodies, lenders, and other authorities but is also a necessary step for maintaining business operations.

Elevate, as registered auditors in DIFC, can help companies navigate these requirements, ensuring peace of mind while remaining compliant.

Why Audit Is Mandatory by DSO Approved Auditors in Dubai?

In accordance with Regulation No. (1/2006) issued under Law No. (7) of 2004 as amended by Law No. (16) of 2005 and UAE Federal Law No. (8) of 1984 Regarding Commercial Companies, companies registered and operating within DSO are obligated to have their books of accounts audited by Registered Auditors in DSO.

Companies engaging auditors must ensure their independence, often achieved through a rotation system for auditors. DSO approved auditors in Dubai play a critical role in ensuring that company operations adhere to Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) guidelines established by the UAE Central Bank. If any suspicious activity is detected, the Registered Audit Firms in DSO are required to report it to the authorities.

The auditor’s report must affirm whether the company’s accounts provide a true and fair view of its financial affairs at the end of the fiscal year, along with being free from material misstatements. Approved Auditors in DSO must also confirm whether the company is conducting activities permitted under its license.

Types of Companies Registered in Dubai Silicon Oasis

Branch

Any established company, whether in the UAE or abroad, can register a branch in Dubai Silicon Oasis. The branch’s proposed activities must align with those of the parent company.

An FZE is a legal entity incorporated/registered by a single shareholder, who can be an individual or a non-individual/corporate entity.

An FZCO is a legal entity incorporated/registered with a minimum of two shareholders, who can be individuals or non-individuals/corporate entities.

Maintaining Accounting Records forAuditing

Companies operating within DSOA are required to maintain comprehensive accounting records, including supporting documents that can adequately explain their financial transactions. These records must comply with the International Financial Reporting Standards (IFRS) and provide an accurate view of the profit and loss for the given fiscal year.

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