In the International Free Zone Authority (IFZA), organizations are required to meet IFZA financial requirement to hold their license. One query that frequently arises is whether an audit is obligatory for businesses during the license renewal process. An audit is an in-depth examination of a commercial enterprise’s economic statistics, methods, and controls. While IFZA does not explicitly state that an audit is obligatory for all business groups, there are instances in which an audit is needed. Factors, which consist of enterprise company size, turnover, and organization’s activities, can impact the need for an audit. It is essential for IFZA-registered companies to understand the IFZA mandatory audit necessities and ensure compliance to keep away from any potential consequences or complications at some point during the license renewal process. This blog highlights the significance of auditing services and how they are helpful for accounting corporations registered underneath IFZA.
International Free Zone Authority (IFZA): Overview
International Free Zone Authority (IFZA), Dubai, is located at one of the thriving economic gateways of the UAE and is a high-quality platform that provides an infrastructure and vicinity for neighborhood and worldwide business. It also helps in optimizing the benefits of the UAE’s geographical region, world-class infrastructure, enterprise, and tax surroundings.
Why Choose IFZA?
IFZA offers a range of licenses and support all business setup needs. With flexible business licenses, simplified legal procedures, it also provide wide range of benefits which are as follows:
- Import and export tax.
- No private earnings tax.
- A secure and commercial enterprise-pleasant legal framework for licenses
- IFZA License -The right to upgrade or downgrade with complete ease.
- Residency visas are available for commercial enterprise proprietors and employees.
- Fast-Growing Worldwide Business Network.
Is Audit Mandatory for Companies with an IFZA License?
Yes, an audit from an IFZA-licensed auditor is mandatory for all corporations registered under the IFZA license. According to IFZA License Companies Regulations of 2023, every company shall maintain accounting statistics inclusive of underlying documents that are enough to show and explain its transactions. Also, all companies need to submit their balance sheet (financial file) within 9 months of the end of every 12 months, audited with the aid of an approved auditor under the IFZA license. ebs is approved auditors listed under IFZA license.
Consult IFZA approved audit firm in Dubai to facilitate your auditing and accounting needs successfully.
Rules and Regulations Related to External Audit of Organizations in the IFZA License
The implementation rules state that businesses registered under the IFZA license must hire an independent auditor from a list of authorized audit companies under the IFZA license.
- A company’s accounts shall be accepted by the shareholders or directors and signed on their behalf by at least one of them. As directed by the registrar, the company shall file with the registrar a replica of the money owed, and auditors shall report within seven days of such a directive.
- As per the IFZA license Companies Regulations, it’s the obligation of each enterprise to make sure that their appointed auditor is registered as an approved auditor with the IFZA license and is listed within the IFZA license Approved Auditors List.
- One of the foremost necessities for imparting outside audit offerings within the IFZA license is that auditors in the IFZA license ought to hold an expert license permitted by the Economic Department of Dubai, UAE.
- The authorized auditor appointed through an organization with an IFZA license needs to perform an external audit of the business enterprise’s annual bills and submit an external audit report to the business enterprise.
Are Audited Financial Statements Mandatory for IFZA Renewal Licenses?
Yes, audited financial statements are mandatory for the renewed license of the International Free Zone Authority (IFZA). The IFZA financial statements require all agencies to submit audited economic statements as part of the renewal process to ensure compliance with economic reporting requirements and policies. These statements are to provide transparency and responsibility regarding the monetary activities and overall performance of the business enterprise.
Timeline for Submission of Audited Financial Statements
According to the IFZA policies, corporations registered with the free quarter should post their audited financial statements within 3 months at the end of every economic year.
Consult with IFZA approved audit firms in Dubai to facilitate the audit file submission procedure and meet the closing date successfully.
Procedure for Submitting Audited Financial Statements
To publish audited financial statements to the IFZA authority, corporations have to add the auditor’s signed and stamped Audited Financial Statements Summary Sheet and the Audited Financial Statements Report through a designated on-line service request at the member portal. This streamlined system ensures green submission and compliance with the policies.
Consult with the IFZA audit companies in Dubai to apprehend the submission procedure in detail and ensure a smooth audit file submission.
How Do I Appoint Approved Auditors to the IFZA License?
A company shall employ an organization of auditors authorized through an IFZA license, who shall have a look at and file the debts in accordance with the Companies Regulations. The appointment of a firm as an auditor of a company is taken to be an appointment of all people who’re partners of the firm and are registered as auditors under the IFZA license. A company shall at every annual general meeting hire an auditor to keep office from the belief of that assembly to the realization of the following annual general meeting.
What if you do not Audit Your Books of Accounts in your Organization Registered Under the IFZA License?
If an agency with an IFZA license fails to submit the audited monetary statements within the time frame to the authority through the online portal, it is going to be susceptible to paying penalties for non-compliance with the IFZA license regulations. Failure to submit the desired audited economic statements will result in a heavy fine and may lead to the suspension of services. The major risk that businesses face for failing to submit audited financial reviews is the non-renewal of their exchange license in IFZA.
What Role Does ebs Play in Audit Services Under the IFZA License?
ebs Chartered Accountants is the listed auditor in the IFZA authority. Being accredited auditors with an IFZA authority, we assure exceptional professional service and behavior during the audit according to the requirements of the International Standards on Auditing (ISA).
Why is ebs the Best Choice for Auditing Accounts?
We have a team of qualified experts with tremendous expertise in auditing, our auditors conduct the audit process inside the customers’ premises with the purpose of guiding and assisting the accountants to design and put together the financial statements in accordance with the International Financial Reporting Standards (IFRS) without affecting the independence of the audit.
Approach our experienced auditors in Dubai and UAE free zones to get sturdy accounting and auditing services for your company and boost its operations. Our crew of experts provides you with customized audit offerings that you can tailor to your needs. We serve you with a bunch of streamlined services that can take your enterprise in free zones to the next level and help you achieve your goals. Approach our team of specialists to learn more about our personalized auditing and accounting offerings.
Contact us at: [email protected] if you have any questions, and be sure to read our most recent blogs, articles, and FAQs.
FAQs
Is Financial Audit Mandatory In UAE?
According to UAE legislation, all businesses must retain their books of accounts for a minimum of five years. Moreover, they must maintain the annual audit and keep the records in hand.
Who Can Audit a Company In UAE?
Independent, regulated audit firms that are registered with the Ministry of Economy and other pertinent agencies are required to audit companies in the United Arab Emirates. Also, these firms employ qualified auditors meeting specific experience, education, and exam requirements.
What Is the Audit Process In UAE?
The process involves the thorough examination of the financial statements, supporting documents, and tax declarations by the FTA. Moreover, the audit process aims to verify the completeness and accuracy of the reported information.