JAFZA-approved auditors are auditors authorized by law to conduct external audits on companies that operate within the Jebel Ali Free Zone Authority. JAFZA is one of the 37 free zones in the UAE that have attracted thousands of foreign companies. As required by law in JAFZA, all companies legally operating in the area need to provide an audit report every year so that the economic department can renew its operating license. The government relies upon JAFZA to approve auditors for this operation.
One of the main reasons every company in the Jebel Ali Free Zone Authority must be audited is so the government has more control to regulate the business environment. This is done by ensuring fair competition and making sure no company suffers adversely from doing business in JAFZA.
Auditing in JAFZA is also conducted to identify companies that may be operating illegally. These are usually companies that do not to adhere to the standards recommended and approved by the authorities. Any company operating in this manner that is also not meeting the auditing requirements risks closure.
Allowing your company to be audited annually by JAFZA approved auditors will portray full transparency in how your company operates and give a clear picture of the company’s revenue flow. This information is important to stakeholders, and, in many cases, interested investors that can use the data to make financial decisions. Customers doing business with a particular company also have the right to know the public financial statement to get a clear picture of whom they are dealing with.
While there are many auditors and auditing firms in JAZFA that can help you with your internal auditing needs, note that there are specific auditors and firms that have been given authority by JAZFA to conduct an external audit on behalf of the Ministry of Economy. These are usually listed on various platforms, and you can easily select one to handle your company.
A company with a good audit score will always attract lucrative opportunities because it will have a clear analysis of its practices as shown by the audits. These audits can also indicate malpractice, the state of working conditions, and even the quality of its manufacturing processes if you are running a production plant.
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The main work of an auditor is to make sure that you have clear records of your company’s financial activities. Auditing by an approved JAFZA auditor results in a better insight into the company’s financial status. This can help you make better financial decisions for your company in the future.
Because it is required that your company gets audited by a JAFZA-approved auditor, you will be in compliance with the law, which will save you a lot of trouble. Remember that there are many benefits a company operating in a free zone enjoys. As a way of giving back, companies must provide an accurate financial status for their companies.
Auditors who have been licensed to operate in JAFZA have helped many companies identify their financial strengths and weaknesses. An auditor can identify the primary source of revenue for your company. The company can use this information and acquire more control of its business. Additionally, Auditors point out expenses that are draining your company the most and help you find alternative solutions to help you save money.
One of the leading causes of company failure is fraud and corruption. Illegal trade activities conducted by employees can drain a company. This is especially bad if it involves the unlawful use of services or products through improper channels. This means money meant to be used as working capital for the company gets diverted to someone’s pocket. Through an audit, it is possible to identify employees who are robbing your company of business and react accordingly.
Doing business in free zones is a great decision for investors and maintaining a good relationship with authorities is essential. Companies are safer hiring external companies to directly monitor company operations. Relying on internal auditors who have little or no prior experience in conducting such audits can be risky.
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This is where Farahat & Co comes in. Our team of experts is more than happy to help with an External audit as we are JAFZA-approved auditors. Such a caliber of Auditors is required by law to audit the companies operating in JAFZA.