Approved Auditors in Dubai for DDA-Registered Companies
The auditing in the current business environment is very important; Audits enable firms, shareholders and stakeholders to make informed decisions and know performance. Financial or internal audits or tax audits can be done by approved auditors. They make sure that they comply with the local laws and also contribute to the increase of investor confidence. The best auditing practices are central to the UAE businesses. They contribute towards sustainable growth. Farahat & Co. is an approved auditing firm for all your business needs.
Mandatory Audit Requirements for Dubai Development Authority (DDA) Companies
The 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 the accounts and audited economic statements for shareholder presentation.
Top Audit firms in Dubai ensure efficient and seamless audit procedures. The economic 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 economical 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 economic 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 economic year.
With the shareholders’ agreement of the company, the director of the company will appoint DDA-approved auditors to conduct the financial assessment. A written notice of appointment is sent to the selected DDA-authorized auditor to conduct the economical assessment on the company premises.
Under the DDA audit guidelines, the auditor has the full authority to access the company’s economic records and communicate with the company’s employees for further information.
Understanding the DDA Audit Checklist
Companies must submit financial assessment report 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 economic and operational well-being. Therefore, before there is any risk of default, fraud, or illegal activities, an audit of the company’s economicstatement is required to determine 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 economical statements.
- To confirm if the company has followed the standard accounting procedure and prepared the economic 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 economic assessment report.
Read more Get A Quote 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 economical 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 economical 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 registration and winding up financial assessment compliance.
Our team of professionals and expert-certified public accountants works towards providing value-added economical assessment services to our clients.
As a part of the top 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.
What is the way to confirm that an auditor is approved by the authorities in Dubai?
Go to the lists on the DED registry or free zone authority on licensed auditors.
What are the industries that should have auditing as a requirement in Dubai?
Banking, finance and big corporations are among the regulated industries that are to be audited.
What is the cost of an audit in Dubai?
The cost of auditing depending on the company size and services provided is varied between AED 10 000-100000.
Is VAT and tax assistance available through auditors?
Yes, auditors approved by DDA help in matters of tax compliance, VAT reporting, and regulatory reporting.
What is the average duration of audit?
The average audit period is between 2-6 weeks based on the size and complexity of audits.
What is the process of attaining auditor certificate in the UAE?
You have to have CPA or CA qualification to be an auditor. You are also required to be registered with DED and undertake the required regulatory approvals.
What about the salaries of auditors in Dubai?
Salaries vary between AED 15,000 and AED 50,000 per month according to experience.
Who regulates the auditors in the UAE?
Auditors are regulated by the Ministry of Economy, DED, and free zone authorities in the United Arab Emirates.
Is a CA recognized in Dubai?
Yes, the auditing and advisory services are fully recognized under chartered accountants (CA).
