DAFZA Approved Auditors
DAFZA Approved Auditors in UAE
Companies operating within the Dubai Airport Free Zone (DAFZA) are mandated to have their financial records audited by registered audit firms approved by DAFZA, often referred to as DAFZA approved auditors. These approved auditors are the only ones permitted to conduct audits, liquidations, and provide services to companies licensed by DAFZA. This audit requirement applies to both Free Zone Establishments (FZE) and Free Zone Companies (FZCO) and is designed to ensure compliance with both local and international financial regulations, including the International Financial Reporting Standards (IFRS), as well as Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) measures.
About Dubai Airport Free Zone Authority (DAFZA)
Situated adjacent to the Dubai International Airport, DAFZA was established by the Government of Dubai under Law No. 2 in 1996. Its vision aligns with the UAE Government’s strategy for an investment-driven economy. DAFZA is home to approximately 1600 companies spanning various sectors, including aviation, engineering, and telecommunications. DAFZA significantly contributes to Dubai’s foreign trade, accounting for 12% of Dubai’s foreign trade in the first nine months of 2019. Its strategic location near Dubai International Airport makes it an attractive choice for global investors, with more than 150 airlines connecting over 220 destinations across six continents.
The Mandatory Audit Requirement with DAFZA Approved Auditors in UAE
Companies registered with DAFZA must engage the services of an approved auditor appointed by DAFZA itself. These auditors are responsible for examining and reporting on the company’s financial accounts, ensuring compliance with the International Financial Reporting Standards (IFRS), and verifying that the company is not involved in money laundering activities.
The auditor’s report must confirm that the company’s accounting records are complete, without material misstatements, and present a true and fair view of the company’s financial affairs at the end of the fiscal year. Furthermore, the auditor must state that the company is engaged only in activities permitted by its trade license. These audit reports play a pivotal role in the renewal of the company’s trade license, as authorities rely on them for decision-making.
Additionally, DAFZA approved auditors are tasked with investigating whether the company has maintained proper and comprehensive records in accordance with the requirements of the Ministry of Finance and the Federal Tax Authority (FTA). Auditors also ensure that the company’s accounts align with its accounting records, returns, and VAT compliance. Companies operating within DAFZA have the option to choose from a list of reputable DAFZA approved auditing firms, considering their reputation and experience. It’s important to note that DAFZA is a designated Free Zone as per FTA regulations.
Preparation and Maintenance of Accounting Records for Audit
To facilitate the auditing process, companies are required to maintain comprehensive accounting records, including supporting documents that can adequately explain their financial transactions. These records should accurately reflect the company’s financial position and adhere to IFRS and FTA regulations, providing a clear view of the profit and loss and financial position for the given fiscal year.
Documents Requested by DAFZA approved auditors for the Audit
To conduct a thorough audit and provide assurance, Approved Auditors in Dubai Airport Freezone typically request relevant documents from companies for the applicable year. These documents aid auditors in forming opinions on the financial position by analyzing year-end financial statements in accordance with regulations. Some of the documents that companies are typically required to present include:
- Bank Statements
- Confirmation of credit/debit transactions
- Copies of bills and invoices
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Latest Trade License
- Registration Details for VAT and Excise Tax (if applicable)
- Books of Accounts
Choose Elevate for Auditing Services in DAFZA
All companies operating within the Dubai Airport Free Zone must engage an auditor from the List of registered Auditors in DAFZA. Elevate, a highly regarded auditing and accounting firm in the UAE, is registered with the Dubai Airport Free Zone Authority (DAFZA).
Elevate’s team of qualified Chartered Accountants offers in-depth analysis and reporting on the accounts of both FZE and FZCO companies operating within DAFZA. Elevate ensures that company accounts are free from material misstatements and comply with both local and international regulations, including IFRS, Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT).