JAFZA Freezone
It is apparent that auditing is the most important function that all companies need to perform. Knowing if the business is running effectively or going through some loss is crucial. Auditing helps the business to know about the internal control of the company and the progress of the business. It is very likely that some of the companies are undergoing some errors and having serious financial issues. It is better to appoint an approved auditor who can give you an overview of your business’s progress and an apparent picture of your books of accounts.
In this article, we will discuss all the requirements and processes of the JAFZA Free zone audit in UAE.
JAFZA Freezone
JAFZA (Jebel Ali Free Zone Authority)
JAFZA Freezone
The Jebel Ali Free Zone Authority (JAFZA) is a well-known established free zone in the UAE. It is quite attractive for businesses to establish their companies in this free zone area. The government of UAE has ensured that all the businesses that are registered in this free zone area are complying with all the rules and regulations imposed by the authorities.
JAFZA mandates the companies registered under its license to carry out financial audits. It is mandatory for companies to get their books of accounts audited by JAFZA-approved auditors. if some companies are failed to comply with the rules and regulations then it will lead to serious consequences and penalties.
If your company is registered with JAFZA free zone then it is mandatory for you to maintain your books of accounts and get them audited by the approved auditors of JAFZA for further procedures. Those companies which are not aware of the JAFZA regulations might be subject to severe compliance failure which will result in penalties.
JAFZA Approved Auditors List
According to the JAFZA regulations in 2016, companies registered with the free zone must get their accounts audited by JAFZA-approved auditors. The JAFZA registrar has a list of approved auditors which indicates which firms are registered and licensed approved auditors. The companies can only refer to these approved auditors who are on the list of JAFZA-approved auditors for their auditing process. Free zone companies can also appoint more than one auditor for the auditing process.
Responsibility Of Approved Auditors In JAFZA
According to the free zone’s regulations, auditors in JAFZA are required to ensure the following:
- It is the responsibility of the approved auditor to identify the standards or principles used in the preparation of the accounts.
- The auditors state that the accounts are prepared in line with the applicable laws, standards, regulations, and principles.
- JAFZA-approved auditors state whether the books of accounts provide fair and a true view of the financial affairs of the business.
- Auditors also state other matters or opinions required under the stated regulations of JAFZA.
- All the registered companies in JAFZA should submit the audit report within 90 days from the end of the financial year. They can also submit within the extended period if any extension needs to be applied.
Those companies which are failed to submit the audited financial statements to JAFZA within the time frame will face penalties and even there will not be a renewal of the trade license of the company.
Reasons For The Auditing In JAFZA
Most of the companies in the UAE carry out an annual audit in the UAE when there is a legal compulsion. However, companies must consider the other benefits of auditing services in the UAE. these are the following requirements and reasons to appoint an approved auditor in JAFZA.
- It enables you to meet the regulations of the free zone authority.
- You can get the trade license renewal without any penalties or delay.
- Business partners and stakeholders can understand the financial position of the company.
- Audited financial statements by the approved auditors will increase the confidence of the shareholders.
- It also highlights the deficiencies in the internal control of the company and improves the accuracy.
- Companies regularly conduct audits that give more creditability before government authorities, banks, and potential investors.
- Auditors will help you detect any fraud by partners or employees which will help boost the business.
How Can ebs Help You?
Auditing accounting indicates the true position of the company in the market. The companies that are registered in JAFZA enjoy many benefits, but they also need to follow all the regulations. All the rules and regulations are for the future growth of the company that is registered in the JAFZA free zone. It is mandatory for companies and businesses to follow the JAFZA rules and regulations and also for the process of the auditing process.
ebs is a firm in the UAE having professional accountants who provide you with various accounting services and is also approved in JAFZA. 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 also provide reliable solutions for the advancement and benefit of the company. We provide accounting and bookkeeping services, auditing, approved auditing, CFO services, business setups, corporate services, and many more. If you want to avail any other accounting and bookkeeping service, then feel free to discuss it with our team of experts.
JAFZA Freezone