Statutory Audit in UAE refers to a legal strategy to verify the accuracy and reliability of financial processes related to financial statements and articulation of any organization. It is performed for the evaluation of the financial health of the organization. The primary objective of this audit is to form an independent and unbiased opinion of the data presented in the document, i.e. the financial statement of the company reflects whether the report reflects the true value of the company’s view. Statutory audit services are significant in increasing the authenticity and legitimacy of financial data.
Legal authorities conduct a legal audit of their companies to identify whether the companies provide reasonable financial data to be made public. Before the auditing process, businesses are required to organize their documents according to the legal standards made by the government authorities. For the compliance of legal standards in Dubai, approved auditors are required to follow the International Standards issued by International Federation of Accountants through Audit & Assurance Standard Board when doing annual financial audits of any organization. During the statutory audit in Dubai, the management of every company must hire approved auditors with statutory audit services UAE to keep each and every thing in order.
Why Should A Company Conduct A Statutory Audit?
Usually, a statutory-audit is performed to check the accuracy of the records and statements given by the firm to the public. Through the statutory review, the public can guarantee whether the companies follow the rules and directions while they perform their business-activities. Amid a statutory review the bank equalizations, bookkeeping records, winning working conditions, inner frameworks, etc. are assessed to urge a clear picture of the firm’s activities and current position.
What Are The Fundamental Prerequisites Of A Statutory Audit?
For conducting a statutory review, a firm is required to hire a statutory auditor in Dubai to perform the review of the company.
Other basic prerequisites incorporate the following:
- Fixed resource details
- Bank account statements including credit and debit transactions for the particular period as required
- Details with respect to secured and unsecured loans (if any)
- Trade receivables and payables
- Purchases and sales including imports and exports
- Details of inventory
- Tax records with statutory dues and obligations
- Costs in selling and administration
- Forex benefits and consumption details
The company may be required to check other records, explanations, or accounts as per the requirement of the statutory reviewer. The term of the review may change; in some cases, it may take a month or more depending on the nature and size of the company.
Advantages Of Statutory Audit Review
- Improves the image and goodwill of the company.
- Increases open certainty and validity of the company.
- Helps the clients and financial specialists to urge a straightforward picture of a firm’s monetary position and performance.
How Can A Statutory Audit Review Be Valuable To A Firm?
The statutory review may be valuable for the companies working in UAE within the taking after ways:
- It is required for all UAE main-land companies to have their accounts and records examined by an authorized statutory auditor; different free-zone companies may have certain requirements.
- In the course of recharging the business trade licenses, the companies must yield their statutory audit-review reports.
- The companies may be required to supply all statutory review reports when they approach any bank or monetary institution for getting credit or capital speculations etc.
- The statutory review report of all the money-related exchanges and accounts must be given to the shareholders, common open, and other substances to know the current monetary position, within the case of a public company.
- In the course of the share exchange of the company, the statutory review may play the part of a central reference point to decide the exactness and unwavering quality of the accounts and transactions.
- A statutory review report gives the total picture of a company; hence the public and the interested parties can assess its current money-related position. It additionally also helps in making a difference in building a public image and credibility of the company.
Process of Conducting Statutory Audit
- Appointment of a licensed statutory auditor.
- Acceptance by the approved statutory auditor to conduct the review of the financial statements and records of the company.
- The statutory auditor in Dubai and his group will evaluate and get all the operations of distinctive offices and guarantee whether the industrial rules & regulations are followed or not.
- Then the statutory audit reviewer may assess the control frameworks and methods executed by the company, they may go through the past review reports to induce a thought of past perceptions and the methodologies taken.
- In the end, the approved statutory auditor may look at all the monetary records and articulations given by the company e.g. bank articulations, settled resource points of interest, exchange payables, and receivables, etc.
- The statutory audit reviewer, on the basis of their perception, may get ready a point-by-point report which can be submitted to the company management, and which may be utilized for advance requirements.
Why Choose ebs Chartered Accountants ?
ebs Chartered Accountants is known for giving the leading help to its clients for keeping up with the precise and error-free records of all money related exchanges.
Our experts are continuously prepared to assist you out with all sorts of bookkeeping and examining challenges by statutory audit services in UAE.
We continuously center on giving personalized and customized services as per the prerequisites of our clientele.
We are continuously there to direct our clients with respect to all prerequisites of statutory review.
For more points of interest feel free to contact us.
FAQS
Is statutory audit mandatory in UAE?
Yes, a statutory audit is mandatory in the UAE. All businesses operating in the country must have their financial statements audited by an independent auditor. This is a legal requirement to ensure that the financial statements are fair, compliant, and accurate with all the laws and regulations.
Who can perform audit in UAE?
Only qualified auditors can perform audits in the UAE. Also, to be qualified, an auditor must meet these requirements.
- Be a member of a good accounting body
- Have at least five years of experience in auditing
- Pass a professional audit examination
Is audit mandatory for corporate tax in UAE?
Yes, an audit is mandatory for corporate tax in the UAE. All businesses with a taxable turnover of AED 300,000 or more must file an annual corporate tax return. Moreover, they must audit their financial statements audited by an independent auditor.
What is the statutory audit?
A statutory audit is an independent examination of a company’s financial statements to ensure they are fair, compliant, and accurate. The purpose of a statutory audit is to provide assurance to stakeholders that a company’s financial statements are reliable and can be used to make informed decisions.
How can I become a licensed auditor in the UAE?
To become a licensed auditor in the UAE, you must first meet the following qualifications:
- Have at least three years of experience in auditing
- Have a bachelor’s degree in accounting or related field
- Pass a professional audit examination