DMCC Companies Need An Audit
Many companies get confused about whether they need to conduct an audit or not. Auditing is mandatory for all Dubai Multi Commodity Centre (DMCC) member companies. Dubai Multi Commodity Centre (DMCC) is a rapidly growing free zone in UAE to provide a financial and business hub to the trading community. DMCC consists of more than 6500 companies including regional industry participants, large multi-national organizations, small and medium-sized enterprises, and start-up companies.
DMCC is like a gateway to trade as it leads the way for Global Trade with a variety of business option products such as diamonds, stones, pearls, and gold. Auditing indicates the adequacy of the internal control of the company, promotes best practices and ensures compliance with rules, regulations, and standards. An external audit helps companies to identify potential misdoings, inefficiencies, and waste. An external audit provides insights, and review technology, IT, system, and processes in a company. However, auditing in DMCC is done by approved and licensed auditors with transparency fairness, and objectivity to facilitate vendors, shareholders, and banks. The appointed auditor must be registered as an approved auditor with DMCCA and should be on the approved auditor list.
What Is The DMCC Audit Process For A Business?
A company must submit its financial accounts to be audited by a DMCC-approved auditor within 90 days following the end of the financial year. A corporation is expected to keep all the financial records for the last five years and these records should be audited on a regular basis to avoid any uncertainty.
There are many benefits to having a business audited as well as assisting company management in understanding the financial status of the company. External auditing helps the company to maintain its financial records which are essential for filing taxes.
What Records Are Necessary During An Audit Of A Company?
The Authority in DMCC can request any required document from the company during the audit. Here is the most important document list that is required during the auditing of a company by the authority.
- Bank statement.
- Copies of bills and invoices.
- Articles of association.
- Memorandum of association.
- Statement of deposits from DMCC portal.
- Credit or Debit confirmation slips for financial transactions.
Developing An Audit Plan
The auditing process in Dubai, UAE starts with gathering and collecting documents from the DMCC companies. After collecting the documents, the next step is to plan thoroughly how the audit will be conducted. Meetings and discussions are also arranged to identify potential future issues and there should be a comprehensive audit plan drafted at the end.
Auditors also attain detailed knowledge and background information about DMCC companies to know the risk of misrepresentation on financial statements. After gathering all the information about the auditors identify the risk of material misstatement including risk in the process and system and control. They gather all the information of the company regarding the level of transactions, account balances, and discourse where the misstated information is found.
Test Of Controls And Audit Report
At this stage, auditors ensure that all essential controls are maintained, developed, and implemented effectively. It also guarantees that all receipts, transactions, and invoices have been recorded accurately.
After the detailed assessment of the company’s book of accounts, approved auditors in Dubai, UAE makes the final decision about the status of the financial statement disclosure. After all this procedure, a standard report is prepared by the qualified and registered auditor. The audit report shows all the necessary details about the weaknesses and strengths, business process, and system.
According to the rules and regulations of the DMCC, approved auditors have to upload the audit report in Dubai, UAE at the end of the fiscal year. DMCC free zone offers great benefits to the registered companies and the most prominent is the location. The location is close to Sheik Zayed Road and Jabel Ali Port which attracts a huge number of foreign investors. Some of the benefits include:
- No application of corporate and personal tax rates.
- Complete ownership of the foreign business.
- No currency restrictions.
- Allowing multiple shareholders.
- Quality freehold, residential and commercial property for sale.
In the DMCC free zone, ebs can help you with all of your accounting and auditing needs. We are approved auditors who have assisted hundreds of businesses with their audits. Our team of professionals goes beyond the basics to bring value and ensure that auditing plays a productive role in your business.
If want to get your auditing and assurance, ebs is a registered auditor to assist in your auditing process. Feel free to consult the expert teams of ebs about auditing services and any confusion regarding internal or external auditing. If you are looking for approved auditors in UAE, then don’t hesitate to contact ebs. ebs is one of the best accounting and bookkeeping firms as well, we assist businesses in many fields such as accounting and bookkeeping, CFO services, auditing services, approved auditing, corporate services, payroll services, and many more.