The governments of the United Arab Emirates have come up with the initiative to build up a number of free zones where businesses can set up and operate without worrying about being taxed. During the course of operations, these free zones will also provide a number of benefits. The Dubai Multi Commodity Centre is one such free zone. In DMCC the need for auditing rises it is because an Audit Report by an approved auditor in Dubai is proof of authenticity of the business.
Is Audit Mandatory for Companies in DMCC?
It is mandatory to conduct Auditing for a DMCC company, as the Audit report ensures that the financial record is accurate and well maintained. Every DMCC free zone company is needed to keep its accounting report, audited financial reports for the last five years. A well-recorded audit report by the auditors in DMCC ensures that your company stays on top of its financial health.
Even if the company is not active in business called nonactivity, the dormant companies are also required to submit the Audit Report to DMCC.
What are the requirements to be an Approved Auditor in DMCC?
It takes a lot to be able to conduct auditing for a DMCC company. The DMCC approved auditors must be qualified and consists of the following requirements –
• The audit firm must have an employee who will play the role of Lead Auditor. He/she should have an accounting degree and at least ten years of experience in Auditing.
• The Audit Firm must have a valid commercial/professional trade license that allows it to audit from a recognized responsible authority in the UAE.
• The audit firm should have a physical presence in the United Arab Emirates.
• The UAE Ministry of Economy should have issued the Audit Partner with a valid certificate.
Elevate as an Approved DMCC auditor qualify all the above points and maintains its position as an approved auditor for the last 8 years in DMCC.
What are the requirements to be Approved What are the documents to be maintained by the DMCC Company for the smooth process of Audit? ed Auditor in DMCC?
In order to conduct an Auditing, accounting and auditing companies require the following documents –
• Bank statements
• Credit/debit verification slips for financial activities
• Copies of all the invoices
• Receipt of deposits from the DMCC portal(Portal Statement)
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Certificate of Incorporation
• Last year Audit report, if the company was audited
Auditors in DMCC can ask for any of the above-listed documents if required to conduct a smooth audit.
Elevate Auditing is an accounting and auditing service provider in UAE, which makes sure that the auditing, is done by applying all the latest methodology. In general Audit report is issued according to IFRS. Our professionals make sure that all the errors in the financial statement are verified and the right measures are undertaken to rectify those.
Why DMCC accepts Audit reports only from Approved Auditors?
The auditor delivers his evaluation on the financial report supplied by your company during an audit contract. The auditor’s report is an important part of the audited financial statement for a company. The auditor expresses his view in the auditor’s report. The DMCC approved auditors make sure that there is no misstatement of the financial records. Moreover, an approved auditor will take care that the reports prepared are according to the guidelines of International Financial Reporting Standards (IFRS).
Audit companies only those who met DMCC criteria can be part of DMCC Approved Auditor.
Should DMCC Companies submit their Audited Financial Statement to the Authority?
It is mandatory to submit Audited Financial Statement to the Authority annually. Also, it is a must that the submitted annual report must be uploaded on the portal of DMCC portal within 90 days after the fiscal year ends. An audit can explain if a company’s financial state is as reported in its accounting documents. Corrective measures can be made if any issues are identified during the audit process by the auditors in DMCC before any errors impact the financial statement.
What are the consequences if businesses in DMCC are not audited?
If an organization fails to present their financial accounts audited by DMCC approved auditors within 90 days of the financial year-end, they would be facing fines according to the DMCC Company Regulations. Also, there are chances that their trading license might not get renewed. So in order to continue their license, a company should get audited and update the audited report within the time frame provided by the law.
Why should you choose Elevate Auditing for Audit in DMCC?
Auditing is an integral part of a company in DMCC and it is mandatory to submit an audited report by the end of the fiscal year. Elevate auditing is a reputed firm based in Dubai that provides accounting and auditing services. Our auditors have the capability to take care of all the requirements for the auditing to be held. The professionals stay well updated with the norms and new rules implemented by the government. This helps them to audit in accordance with that. We understand the time frame of the clients and focus on providing the services in the duration provided to us.