Dubai Multi Commodities Centre (DMCC)
Established in 2002 by the Dubai government, the goal of DMCC has been providing physical, market, and financial infrastructure in order to establish itself as a worldwide commodity trading center. It allows you to trade precious metals such as gold, diamonds, colored stones, pearls, and a variety of other items. It is also known as the “Gateway to Trade” since it facilitates global trade. All DMCC (Dubai Multi Commodity Centre) members must undergo auditing in Dubai, United Arab Emirates. Every member company must appoint DMCC approved auditors to conduct such auditing on a regular basis. An auditor who is registered and recognized as approved auditors in DMCC is referred to as an approved auditor.
Why choose a DMCC Approved Auditor?
According to the rules, the financial audit only has to be conducted by the approved auditor of a company in the freezone. The submission must be done 90 days from the end of the financial year. And if they fail to do so, they will be liable to pay a heavy fine under the DMCC company regulations. Moreover, it might lead to the non-renewal of trade licenses. This factor automatically invites the need for approved auditors in DMCC.
Approved auditors DMCC are a highly specialized team of experts, unlike average auditors. They audit your books of accounts in accordance with ISA, using audit professionals such as CAs, CPAs, CIAs, and ACCAs. They provide industry-specific, risk-based audit services that are tailored to your company’s structure and operational practices.
The primary responsibility of a DMCC registered auditors is to make sure that a company’s annual financial reports are free of any misstatements or incorrect financial facts. In addition, the auditor will ensure that all reports are organized in accordance with the International Financial Reporting Standard (IFRS).
What does a DMCC approved auditor do?
The DMCC approved auditors not only verify your current internal control systems, but also redesign them to make your financial systems fraud-free, dependable, and accurate. They analyze risk variables associated with materials misstatements, your investments, and management’s future action plans using their extensive industry experience. Their recommendation can be seen in the summary part of your audited report.
An approved company auditor must carry out the investigations that will enable them to have in-depth knowledge on the following matters –
• Maintenance of the accurate accounting records by the company is done.
• Returns sufficient for the audit have been received from offices that the auditor did not visit.
• If the accounts of the company agree with the accounting records returns.
• If the Company’s accounts have been prepared and kept in accordance with International Financial Reporting Standards (IFRS).
Monitoring and Review of the Auditors
There are certain steps taken by the DMCC management to monitor and review the work of approved auditors. It is done by checking the data and the response of the DMCC registered auditors. It is mandatory for the entire audit firm to comply with the rule of the Dubai Multi Commodities Centre Authority. This involves attending the meetings and providing the valid documents and information requested by DMCCA.
There will be a suspension or removal of the approved auditor from the approved auditor list in DMCC, if the DMCCA finds any problem auditing report.
Principles followed by a DMCC approved auditor
In DMCC, it is mandatory to annually audit itself, but an audit can’t be done by any regular accounting and auditing companies. The audit firm must be on DMCC approved auditors list. Moreover, the auditor must follow a set of principles that will make sure that the auditor is capable of handling the audit smoothly.
• Integrity – During an audit, the auditor will encounter situations where analyzing reports or tampering with financial data will benefit a single entity or the corporation. When it comes to auditing, an auditor from a good audit company in DMCC with integrity will always choose what is right over what is more profitable. If the auditor does not make a decision with integrity, it is possible that this decision may be made public, and people would lose faith in the firm.
• Objectivity – An auditor must conduct a firm audit objectively and be unconcerned by the outcome. It is important to ensure that the Audit Company approved by DMCC has no financial investment in the company being audited or is in any way connected to the company being audited. Being objective entails remaining impartial to the company and not compromising on the quality of the final report of the audit.
• Confidentiality – All auditors are expected to keep the data confidential of the auditing company. The companies that will be audited will provide their financial and confidential information to the DMCC registered auditors, and if this information falls into the wrong hands, the company will suffer significant damages.
• Skill – This is a fundamental quality that an auditor should acquire. Even if the auditor possesses objectivity, integrity, and other attributes, if the DMCC approved auditors lack the competence to handle all of a company’s financial and sensitive data, the auditor is useless. The auditor can provide services based on the company’s needs and requirements, as he or she has a diverse skill set.
• Professionalism – Professionalism is an important aspect of an auditor’s job. No firm wants to be audited by someone who does not give the impression of being a professional. Being a professional auditor builds up a sense of trust in current and new clients, causing them to be more forthcoming with information. Without giving a second thought, the companies will disclose all of the data requested by the good auditing company.
• Co-operating with the DMCCA – The central authority is in the hands of the Dubai Multi Commodities Centre Authority (DMCCA) for working in the free zone. Hence, the Chartered Accountants in DMCC must comply with the rules and guidelines set by DMCCA.
Why Choose Elevate Accounting & Auditing?
For a business, auditing is crucial. It not only assists in a better understanding of the present but also allows us to forecast the future to some extent. This is why you should always seek the advice of reputable accounting and auditing firms in Dubai. If an Audit is not done from Elevate, we take the responsibility of uploading the report to DMCC.
Timely choosing the Auditor in DMCC you can avoid the portal sanction and financial penalty. As a reputed auditing firm in Dubai, we make sure that the annual auditing for the company is done on time by our team of expert auditors.
Our auditors in DMCC give unbiased expert auditing of the quality and effectiveness of the control environment within the firm, as well as recommendations. We also identify areas for improvement and implement solutions to assist you in meeting your organizational goals and contributing to the smooth operation of your company.
As Elevate Auditing has a good presence in JLT, we invite clients to visit our office and discuss the Audit with our Auditors.