DMCC Approved Auditors
The Dubai Multi Commodities Centre (DMCC) Free Zone, located in the Jumeirah Lake Towers (JLT) offers a variety of benefits while setting up a company including different types of licenses, flexible office structures, and hassle-free business setup procedures. However, it is mandatory that the businesses in the DMCC Free Zone get their books of accounts audited by registered & approved auditors with the DMCC Authority.
Documents required for Financial Audit by DMCC Approved Auditors
DMCC Approved Auditors may request documents from DMCC companies in order to complete the audit and assurance process. This makes it easier for the auditors to perform their duties, which include forming an opinion on the financial position, analyzing financial statements at year’s end, and adhering to DMCC authority regulations.
- Bank statements
- Credit/debit confirmation slips for all financial transactions
- Copies of bills and invoices
- Statement of deposits from the DMCC portal
- Memorandum of Association (MOA) Articles of Association (AOA)
- Trade license
- Registration Details for VAT and excise tax
Auditing Process in DMCC Free Zone
The DMCC Free Zone has laid out certain regulations as per which companies and company officials are required to cooperate with the DMCC-approved auditors, such as Elevate, included in the DMCC approved auditors list. Companies are prohibited from providing a false, misleading, or deceptive statement to the auditor. It is essential for companies to provide complete and accurate information during the audit process. Additionally, companies are not allowed to omit certain information or destroy or conceal documents from the auditors. By adhering to these regulations and working with approved auditors in DMCC, companies can ensure compliance and maintain transparency in their financial reporting.
Step -1: Preparation of Accounts
In accordance with DMCC regulations, company directors are obligated to prepare annual accounts complying with International Financial Reporting Standards (IFRS). These accounts must provide an accurate representation of the company’s profit and loss during the given financial year.
Step -2: Maintenance of accounts
Every company is required to maintain comprehensive accounting records, including supporting documents that can effectively elucidate its transactions. These records should accurately reflect the company’s financial position at any given point in time.
Step -3: Copies of Accounts
DMCC mandates that all shareholders have the right to request copies of the company’s recent audited financial statements and auditor’s report. Upon a written request from shareholders, the company must comply within five business days.
Step -4: Appointment of Auditors
Companies can engage the services of auditors, either for specific accounts or on a general retainer basis. The appointment of an auditor takes place at a General Meeting, and these auditors must be registered as approved auditors by DMCCA.
Step -5: Auditor’s report to the company
The auditor’s report should confirm whether the company’s accounts have been appropriately prepared in accordance with IFRS. It should also affirm that the financial statements provide a true and fair view of the company’s profit or loss for the financial year. Additionally, the report should address the company’s adherence to activities permitted by its license and any other requirements specified by DMCC authorities.
Step -6: Auditor's Duties and Responsibilities
Auditors in DMCC are tasked with conducting investigations to determine whether a company has maintained proper accounts. They must ensure that the company’s accounts align with its accounting records and returns, as well as comply with IFRS. Furthermore, audit firms are responsible for verifying the company’s compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) guidelines, and they are obligated to report any instances of money laundering activities by the client.
Why Choose Elevate as a DMCC Approved Auditor?
As an approved auditor in DMCC, the area’s geographical convenience allows for easy access to multiple companies and assists in ensuring the timely completion of their audits. Once the audit process begins, DMCC registered auditors, such as Elevate, who are included in the DMCC approved auditors list, are entitled to request confirmation of receivables, fixed asset schedules, bank confirmation, and proof of employee salaries, as per DMCC portal information.
Elevate, an approved auditor in DMCC, offers moderate prices and assists business owners in meeting DMCC’s auditing requirements on time. Elevate’s advice also helps these businesses succeed. With over 1500 SMEs served for their yearly audits, Elevate proves to be a reliable choice for DMCC-approved auditors.