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.