Strata Auditing Services
MOE (Ministry Of Economy) Approved Auditors
Strata Audit Services and Owners Association Audit in the UAE
Financial transparency that satisfies RERA, protects reserve funds, and holds up to owner scrutiny.
Farahat & Co. provides specialist strata audit services for Owners Associations and jointly owned properties across Dubai and the wider UAE. Our work is fully aligned with Real Estate Regulatory Agency (RERA) requirements, verifying that financial statements accurately reflect the association’s assets, liabilities, equity, and operational results in line with UAE legislation and accepted accounting principles.
- RERA-approved auditors, with direct experience preparing Mollak-ready financial submissions
- 40+ years of experience across UAE audit, accounting, and regulatory compliance
- Detailed line-item review, covering every category of service charge revenue and operational expense an Owners Association typically manages
Beyond compliance, our work gives associations and their members greater confidence in the accuracy of their financials and the integrity of how funds are managed.
Our Specialists In Strata Auditing Services
Dr. Imad Kutum
Participant - Audit
Jose Varghese – CA
Participant - Audit
Mamdouh Ali
Participant - Audit
Mohamed Zahran
Audit Manager
V Ramakrishnan
Participant - Audit
As an Approved and trusted Audit Firm In UAE, Farahat Co. Offers Below Audit Services:
What Is a Strata or Owners Association Audit?
A strata or Owners Association audit is an independent review of the association’s financial records, service charges, operational expenses, and related accounting documents. The purpose is to verify that funds are properly managed, accurately recorded, and reported in line with RERA regulations and applicable UAE requirements.
“Strata” and “Owners Association” refer to the same underlying structure: a jointly owned property, such as an apartment building, mixed-use development, or gated community, where unit owners collectively fund and manage shared facilities through service charges.
Legal Framework: Law No. 6 of 2019 and the Mollak System
- Law No. 6 of 2019
Strata and Owners Association governance in Dubai is regulated under Law No. 6 of 2019 Concerning Ownership of Jointly Owned Property, which replaced the earlier Law No. 27 of 2007. Under Article 25 of this law, every unit owner in a jointly owned development is legally obligated to pay service charges, calculated in proportion to their unit’s share of the total development area. Article 25(e)(8) additionally requires every jointly owned property to maintain a reserve fund, held separately from routine service charges, covering emergency expenses and the eventual replacement of major building systems such as elevators, fire safety equipment, and structural components. - The Mollak system
Mollak is the Dubai Land Department’s mandatory digital platform, operated through RERA, for managing service charges across all jointly owned properties. Every annual budget prepared by an Owners Association or its management company must be submitted to Mollak, reviewed by an independent audit firm, and approved by RERA before service charges can be collected from owners. Once approved, quarterly invoices are issued to registered owners through the platform, and service charge funds are held in RERA-supervised escrow accounts rather than the management company’s own operating account.
This structure means a strata audit is not a standalone compliance exercise. It is a required step in the budget approval chain that determines whether an Owners Association can legally collect the funds it needs to operate.
Is Strata Auditing Mandatory in the UAE?
Yes. Owners Associations and jointly owned property entities in Dubai are required to maintain audited financial statements under Law No. 6 of 2019, and annual audits are a required part of the Mollak budget approval process. This applies to:
- Residential and mixed-use developments with shared common areas
- Owners Associations managed directly or through a third-party management company
- Any jointly owned property registered on the Mollak system, regardless of size
Annual audits are a key part of maintaining proper governance, RERA compliance, and financial accountability to property owners, and are a precondition for the RERA-approved budget that allows service charges to be collected in the first place.
What Does a Strata Audit Cover?
Our audit and review process covers the full range of revenue and expenditure categories typical to an Owners Association.
A. Revenue of the Owners Association
- Service charge amount received from Master Community, if any
- Service charges received from Building Administration, if any
- Other received amounts and revenues, if any
B. Expenses of the Owners Association
Cleaning contracts, cradle contracts, generator maintenance contracts, management fees, pest control, security guard and lifeguard contracts, chilled water utilities, water and sewerage utilities, floral contracts, sundry expenses, consultancy fees, furniture and fittings, clubhouse services, fire protection contracts, lift maintenance contracts, MEP contracts, master community service charges, swimming pool maintenance, electricity utilities, waste management contracts, general repairs and maintenance, insurance, bank charges, and painting and surface finishes.
C. Financial statements for the Owners Association
Balance sheet, cash flow statements, and sources and usage of funds, prepared to reflect the association’s true financial position for the period under review.
Our Strata Audit Process
Our strata audit follows a structured, systematic approach designed to ensure all financial activities are accurately reported and compliant with RERA and Mollak requirements.
- Understanding the strata plan: we review the specific development’s financial structure, revenue sources, and expenditure patterns.
- Document review: we examine financial statements, invoices, receipts, bank reconciliations, contracts, and budget records.
- Compliance and risk assessment: we assess the association’s compliance with Law No. 6 of 2019 and identify any potential risks or discrepancies in the financial records.
- Testing and verification: we verify service charge collections against approved budgets and confirm reserve fund usage is limited to its intended purpose.
- Reporting: we issue a formal audit report suitable for Mollak submission and RERA review, alongside practical recommendations for the association.
Benefits of Strata Auditing
A professional strata audit does more than satisfy a regulatory requirement. For Owners Associations in Dubai, it provides a structured foundation for sound financial management and long-term accountability.
- Regulatory compliance: full alignment with RERA, Dubai Land Department, and Mollak requirements
- Verified financial records: accounting books and financial statements that are accurate, complete, and legally recognised
- Annual audit report: a formal, independent report for the association and its members
- Stronger internal controls: implementation of an accepted accounting system with clear oversight mechanisms
- Reserve fund protection: independent confirmation that reserve funds are used only for their intended long-term purpose
- Owner confidence: transparent, verified reporting that builds trust between management and unit owners
Documents Required for a Strata Audit
Standard documentation for a strata audit typically includes:
- Financial statements for the period under review
- Service charge budgets, both approved and actual
- Bank statements and reconciliations for operating and reserve fund accounts
- Contracts with service providers, including maintenance, security, and utility agreements
- Invoices and supporting documentation for all recorded expenses
- Prior year audit reports, where available
- Mollak registration and budget submission records
Exact requirements may vary depending on the size and structure of the association, and organised records at the outset generally shorten the audit timeline.
Why Choose Farahat & Co. for Strata Audit Services
With over 40 years of experience, Farahat & Co. provides strata and Owners Association audit services across Dubai and the wider UAE. Our team works closely with Owners Associations and property managers to maintain transparent financial records, review service charges, and ensure all statutory requirements are met.
- RERA-aligned expertise: direct experience with Law No. 6 of 2019, Mollak submissions, and the budget approval workflow
- Detailed, line-item review: covering every category of service charge revenue and operating expense typical to Dubai Owners Associations
- Certified professionals: our team verifies financial statements, identifies discrepancies, and confirms compliance with applicable UAE laws
- Full-process support: from initial review through to final reporting, with structured findings and practical recommendations
- Established track record: over four decades supporting UAE businesses and property management structures
