DMCC APPROVED AUDITORS
DMCC APPROVED AUDITORS
Cost-effectiveness is a major determinant of organizational growth. A company’s growth and advancement are possible if the company can use its limited resources. Auditing is essential in building company plans that optimize your resources by determining which key expenditure areas give the highest return on investment. DMCC is known as one of the UAE's fastest expanding free zones, with a reputation for maintaining high levels of integrity and expecting the same from the accredited auditors on the list.
We've seen that a few auditors who couldn't keep up with the DMCC's demands are no longer on the list. Business owners should exercise extreme caution when selecting a DMCC approved audit firm in such circumstances. Farahat & Co., the top brand in accounting and auditing, can help you make your organization more cost-effective by providing professional auditing services in DMCC.
DMCC COMPANY AUDITING REGULATIONS
According to the Dubai Multi Commodities Centre Authority (DMCCA) Regulations No. 1 of 2020, which replaced DMCC Regulation No. 1 of 2013, the DMCC has enlisted Dubai auditors in the DMCC Approved Auditors List, following the newly announced Approved Auditors List Rules.
DMCC approved auditors list will ensure that the firms operating in the DMCC receive the highest quality audit services. Registered audit companies with DMCC have reputable chartered accountants, adhere to best practices and accounting standards of local and worldwide reporting standards such as IFRS (International Financial Reporting Standards), and have a track record of completing financial audits. DMCC ensures that the Audited Financial Statements depict the genuine and accurate financial status of the member firms by employing the services of authorized auditors in Dubai.
The DMCC Approved Auditors List Rules also require all DMCC member firms to file their Audited Financial Statements by a DMCC Approved Auditor, according to the DMCC website, which will be implemented during a transitional period. The audited financial accounts must be presented to the DMCC within 90 days of the fiscal year's conclusion.
Companies and corporate personnel are expected to comply with DMCC accredited auditors under specific restrictions established by the DMCC Free Zone. It is illegal for a company to make a false, misleading, or deceptive statement to the auditor. Companies are not authorized to withhold specific information from auditors or destroy or conceal records.
1. Preparation of accounts
Directors of any business operating in the DMCC are required to seek the preparation of accounts for each fiscal period. It must observe the International Financial Reporting Standards (IFRS) and provide a clear status of the profit and loss for the period in question.
Within five Business Days of the relevant General Meeting, each Company must submit a copy of the audited financial statements and the auditor's report with the Registrar and any other information required by the Registrar, including the DMCC summary report.
2. Maintenance of Accounting Record
Each Company is required to keep accounting records, including supporting papers that are sufficient to demonstrate and explain its activities and to report the Company's financial situation with acceptable accuracy at any time.
3. Accounts Copies
All shareholders of DMCC are entitled to a copy of the firm's latest audited financial statements and auditor's report. Shareholders can submit a written request to the firm, which must be fulfilled within five business days.
4. Appointment of Auditors
A company can employ auditors to analyze and report on accounts produced according to DMCC standards. The company may also hire an auditor to write on its financial statements rather than on a retainer basis. The firm must nominate its auditor at a General Meeting, as the DMCC rule requires. An auditor must be registered with DMCCA as an approved auditor in accordance with authorized auditor rules published by DMCCA from time to time.
5. The company's Audit report
The auditor's report must explain whether the Company's financial statements were properly produced in accordance with International Financial Reporting Standards (IFRS). It must say that the accounts present a genuine and fair picture of the Company’s profit or loss for the period under consideration.
The report should include information on whether the firm is solely engaging in activities that are authorized under its license and any other information or opinions that the DMCC authority may demand from time to time.
6. Role and Responsibilities of Auditors
In DMCC a company's auditor is responsible for conducting investigations to determine if the Company's accounts are accurate. The DMCC approved auditor must check that the Company’s accounts match the accounting records and returns and that the firm's accounts are compliant with IFRS. While conducting business, the audit firm should check that the Company follows AML and CFT requirements. If a customer engages in money laundering operations, it is required to report them.
THE ADVANTAGES OF AUDITING IN DMCC
If you're a DMCC-registered business, an audit can help you with:
- Financial statements that are more accurate and transparent
- Assures and ensures the information's validity.
- Budgets will be forecasted, and growth plans will be implemented.
- Renewal of a trade license promptly or processes for winding up a business
- Examine the cash flow situation and put in place internal control processes.
WHO IS ELIGIBLE TO BE APPOINTED AS AN AUDITOR?
An auditor must fulfill the following criteria to be appointed as an auditor in DMCC Free zone:
• DMCCA has authorized and registered the auditor;
• The auditor has given their written permission for the appointment;
• The Company has made reasonable inquiries and is unaware of any circumstances that might preclude the auditor from accepting the assignment.
A FINANCIAL AUDIT BY DMCC APPROVED AUDITORS IS REQUIRED FOR FILING A REPORT BEFORE THE DEADLINE
Auditors may ask DMCC companies to provide documents that correlate to the relevant period to carry out the audit and assurance process, which simplifies the auditor's job of drawing an opinion on the financial position, analyzing financial statements at year-end, and complying with DMCC authority regulations.
The filing of the Audit Report to DMCC has a limitation every year. Only DMCC Approved Auditors with a skilled and enough staff can work proactively to meet clients' needs by producing an error-free audit report accepted throughout the UAE, avoiding any difficulty for company owners. If the DMCC Audit report is not provided on or before the deadline, the Owner's DMCC portal will be blocked, and they may face financial penalties. The DMCC web platform is so well-designed that even business owners may use it to apply for visas, renew licenses, cancel personnel contracts, and upload financial audits and summary sheets in DMCC-approved formats.
DOCUMENTS REQUIRED DURING AUDIT
The following is a list of the papers that must be kept and given to auditors.
- Statements of account
- All financial transactions require credit/debit confirmation slips.
- Bills and invoices copies
- Deposit statement from the DMCC site
- Articles of Association (AoA) /Memorandum of Association (MoA)
- The most recent trade license
- VAT and excise tax registration information
HOW FARAHAT & CO. MAY ASSIST YOU?
The DMCC Free zone strictly regulates the auditing procedure of member firms. The DMCC prepares a list of DMCC certified auditors to ensure compliance with rules and International Financial Reporting Standards (IFRS). Farahat & Co. is a renowned auditing Company in Dubai, UAE, and is on the DMCC's list of accredited auditors. Our experts will examine your DMCC Free Zone Company's financial statements and verify them with supporting papers. Our DMCC approved auditors will assist you in identifying the risks associated with your Company's operations. As a top auditing firm, we can help you enhance and add value to your Company’s corporate governance standards by utilizing the expertise of our professional chartered accountants.