DDA Approved Auditor
DDA Approved Auditor
Dubai Development Authority was primarily developed to boost Dubai’s economy. Arranging an annual general meeting for Dubai Development Authority (DDA) registered companies’ shareholders is mandatory. As per the regulation, the annual general meeting must present a copy of accounts and audited financial statements for shareholder presentation. Top Audit firms in Dubai ensure efficient and seamless audit procedures. The financial statements must be submitted within six months after the closing of the financial year and must include:
- Statement of Profit and Loss
- Retained Earnings
- Balance Sheet
- Changes in the financial position of the company
- Notes and further information
Therefore, companies registered under the Dubai Development Authority must audit their financial statements through registered DDA-approved auditors after the closure of the financial year and before the invitation of
the annual general meeting.
Accounting Practices Required by the Dubai Development Authority
The Dubai Development Authority expects companies registered with them to follow the accounting standards and preserve their accounting records for up to eight years from the end of the financial year.
With the shareholder’s agreement of the company, the director of the company will appoint DDA-approved auditors to conduct the audit. A written notice of appointment is sent to the selected DDA DDA-authorized auditor to conduct the audit on the company premises. Under the DDA audit guidelines, the auditor has the full authority to access the company’s financial records and communicate with the company’s employees for further information.
Understanding the DDA Audit Checklist
Companies must submit audited financial statements through the AXS Portal to renew their yearly trade license. The Dubai Development Authority covers the major free zones in Dubai and has developed a benchmark for the efficiency and development of the companies registered with the DDA. An audited financial statement reflects the company’s financial and operational well-being. Therefore, before there is any risk of default, fraud, or illegal activities, an audit of the company’s financial statement is required to know if the company is following the best industrial practices.
The Private Companies Regulations of 2016, regulation 63.5, state that the companies registered with the DDA must follow generally accepted accounting standards such as the IFRS. The audit report for the DDA must
contain
- The auditor’s opinion on the standard accounting principles used by the company and the appropriateness of the financial statements
- To confirm if the company has followed the standard accounting procedure and prepared the financial statements within the guidelines of the same regulation.
- Confirm whether the company’s financial statements fairly represent the company’s actual profit and loss and do not misrepresent any information.
- The DDA Authorized auditors must also provide comments and opinions on any findings they come across while conducting the DDA Audit. According to regulation 68.3, if the company fails to
provide the auditor’s requirements and does not meet the standard requirement for the DDA Audit checklist, the same must be reported in the audit report.
The Dubai Development Authority Covers the Below Free Zones:
- Dubai Internet City
- Dubai Design District
- Dubai Knowledge Park Free Zone
- Dubai Studio City Free Zone
- Dubai Media City Free Zone
- Dubai Production City
- Dubai Outsource City Free Zone
- Dubai International Academic City
- Dubai Science Park free zone
All the free zones must submit their audited yearly financial statements for the annual license renewal and the presentation at the annual general meeting. The DDA Audit checklist ensures that the companies registered
with the DDA follow standard compliance and accounting procedures. Companies must, therefore, only hire a DDA-approved auditor to conduct the annual external audit and prepare the DDA Audit report as required by
the authority.
What Happens If You Fail to Submit the Mandatory DDA Audit Report?
Non-submission of the audited financial statements might lead to penalties and fines. The fine can even be doubled if the company repeats the same offense. Further non-compliance leads to revoking the trade license,
suspension of the business activity, deregistration of the company, and enforcing compulsory winding up.
Farahat and Co, a Reliable DDA-Approved Audit Firm in Dubai
As the deadline nears to complete the mandatory DDA Audit, Farahat and Co, provides consultation and top-notch, reliable audit services to companies registered under the Dubai Development Authority. Farahat and
Co undertakes companies requiring registering and winding up audit compliance. Our team of professionals and expert-certified public accountants work towards providing value-added audit services to our
clients. As a part of the top Audit firms in Dubai, we ensure that your audit process causes low disruption to your daily operations and maintain transparent communication with your team and management. Contact us
today for your DDA Audit requirement.
