Audit Firms in Dubai: A Complete Guideline

Table of Contents

If you are in the corporate sector and running one of the audit firms in Dubai, you must know the importance of auditing and taxation services in Dubai, UAE.

In this blog, we will discuss in detail how to start an auditing company in Dubai, how to get an auditing license in Dubai, how auditing services works, and all the details you must know about auditing companies in UAE.

We will also consider how to advance auditing works now and acknowledge choosing the right audit company in UAE for your business.

So, let’s start!

What is required for auditing companies in Dubai?

Auditing is compulsory for companies to ensure that their financial records are accurate and compliant with regulations. If you are looking to audit your business setup in Dubai or in UAE, here is what you need to know:

Legal requirements

The United Arab Emirates (UAE) has several laws and regulations that govern auditing, including the Commercial Companies Law, the Federal Law on Auditing, and the UAE Companies Law. These laws outline the requirements for auditing, including the need for a licensed auditor.

Finding an auditor

To find an auditor in Dubai, search online or ask for recommendations from other companies. Make sure to choose a licensed auditor with experience in auditing companies in your industry. Here, Emirates Business Setup gives you professional advisors that can handle all your auditing-related stress and provides the best auditing and taxation services in Dubai, UAE.

Process of auditing

The auditing process involves a review of your financial records, including balance sheets, income statements, and cash flow statements. The auditor will then prepare a report on the accuracy of your financial records and compliance with regulations according to the UAE government.

Types of audit reports

Auditors can provide different types of audit reports, including an unqualified opinion, qualified opinion, adverse opinion, or disclaimer of opinion.

An unqualified opinion means the financial records are accurate and compliant with regulations. In contrast, an applicable statement, adverse opinion, or disclaimer of opinion suggests issues with the financial records.

Audit fees

The fees for auditing in Dubai can vary depending on the size of your company, the complexity of your financial records, and the auditor’s experience. Agreeing on the fees upfront and ensuring no hidden costs is essential.

Overall, auditing is an important process for companies to ensure that their financial records are accurate and compliant with regulations. Following the above steps, you can find a licensed auditor in Dubai and undergo a successful auditing process.

Internal audit services in Dubai

Internal audit services are an essential part of corporate governance for companies in Dubai. These services independently assess a company’s internal controls, risk management practices, and financial reporting processes.

Here’s what you need to know about internal audit services in Dubai:

  • The primary purpose of an internal audit is to evaluate the effectiveness of a company’s internal control processes and to identify areas of risk and opportunities for improvement.
  • Internal audit services provide a range of benefits to companies, including improved risk management, enhanced efficiency and effectiveness of operations, and increased compliance with laws and regulations.
  • Companies can choose to outsource their internal audit services to an external firm or to establish an in-house internal audit function. In Dubai, several reputable firms offer internal audit services.
  • Internal audit services in Dubai are subject to international standards, including the International Standards for the Professional Practice of Internal Auditing (IPPFA) and the Generally Accepted Accounting Principles (GAAP).
  • Internal auditors prepare reports that detail their findings and recommendations for improvement. These reports are typically provided to senior management and the board of directors.

A company in Dubai can choose to outsource its internal audit services to an external firm or to establish an in-house internal audit function and should ensure that the internal audit services are subject to international standards.

How to get an audit license in UAE?

It’s important to note that obtaining an audit license in Dubai can be complex and time-consuming. It is also compulsory before opening or starting your auditing company in Dubai. Consider Emirates Business Setup, as we have one of the best auditors familiar with the process; they ensure that you meet all the requirements, submit the necessary documentation, and get your audit license in UAE.

Here are the general steps to obtain an audit license in the UAE:

1. Determine the requirements.

Review the requirements for obtaining an audit license in the desired Emirate you plan to operate. However, the requirements may vary by the emirate, so it’s important to research the specific regulations.

2. Prepare the necessary documentation.

You will need to prepare and submit several documents, including a business plan, financial statements, a feasibility study, and your qualifications and experience in auditing.

3. Obtain a professional license.

Before obtaining an audit license, you must obtain a professional license from the Department of Economic Development (DED) in the relevant Emirate. Moreover, the commercial license will allow you to conduct business in the UAE legally.

4. Apply for the audit license.

Once you have obtained a professional license, you can apply for an audit license in Dubai. Meanwhile, the application process may involve submitting additional documentation, such as proof of professional indemnity insurance, audited financial statements, and other relevant certifications.

5. Pay the fees.

There will be fees associated with obtaining an audit license, which will vary depending on the Emirate and the scope of your operations.

6. Meet the eligibility criteria.

To be eligible for an audit license in the UAE, you may need to meet specific criteria, such as education, experience, or qualifications in the auditing field.

7. Pass the examination.

Some Emirates may require you to pass an examination to demonstrate your proficiency in auditing. After passing the exam you are eligible to start working as an auditor in UAE.

Documents required to get a business license for audit firms in Dubai

To obtain the initial approval for an audit license in Dubai, you must submit several documents to the regulatory authority for audit firms in Dubai. Moreover, the documents you may be required to submit to get a business license for audit firms in Dubai include the following:

  1. You must provide a detailed business plan outlining your proposed services, target market, staffing requirements, and financial projections.
  2. A feasibility study is an evaluation of the potential viability of your audit firm. It should include market analysis, financial projections, and a competitive landscape assessment.
  3. You will need to provide evidence of your qualifications and experience in auditing. This may include degrees, certifications, or work experience.
  4. You must obtain professional indemnity insurance to protect your audit firm against potential claims and lawsuits, if applicable.
  5. You must submit audited financial statements for the previous two years, if applicable.
  6. You must provide copies of the passport of the proposed shareholders and directors of the audit firm.
  7. You must reserve a trading name for your audit firm through the Department of Economic Development (DED).

The documents required for the initial approval of an audit license in Dubai may vary depending on your situation and the regulatory requirements.

Benefits of internal auditing in UAE

Internal auditing services in the UAE offer companies a wide range of benefits, including improved risk management, increased efficiency and effectiveness, enhanced compliance, better financial reporting, independent assessment, and competitive advantage.

Let’s discuss the benefits briefly:

Improved risk management

Internal audit services help companies identify and assess risks and develop effective risk management strategies, as they can help companies avoid financial losses and reputational damage.

Increased efficiency and effectiveness

Internal auditors can review a company’s operations and processes to identify inefficiencies, redundancies, and areas for improvement. By streamlining operations, companies can improve productivity and profitability.

Enhanced compliance

Internal auditors can assess a company’s compliance with laws, regulations, and internal policies. By identifying areas of non-compliance, internal audit services help companies avoid fines, legal disputes, and reputational damage.

Better financial reporting

Internal auditors can review a company’s financial reporting processes to ensure that financial statements are accurate and comply with accounting standards. This can enhance the credibility of a company’s financial reporting and provide investors with more confidence in the company’s financial position.

Independent assessment

Internal auditors independently assess a company’s internal controls, risk management practices, and financial reporting processes. This assures senior management and the board of directors that these processes are effective and operating as intended.

Competitive advantage

Internal audit services can provide companies with a competitive advantage in their industry by improving risk management, increasing efficiency and effectiveness, enhancing compliance, and providing better financial reporting.

Companies can improve their governance, risk management, and control processes by engaging internal audit services and achieving their business objectives.

Manage your audit firms in Dubai with us!

It is always recommended that if you need auditing services for your business, then you must consult with a business setup like ours. Emirates Business Setup is an exceptional business setup in the UAE, providing the best and wide range of services, including the consultant or legal advisor, to ensure that your auditing and accounting are done hassle-free and perfectly. Additionally, if any of you looking to start your audit firms in Dubai, contact us!

FAQs

1. Why auditing is compulsory for running your businesses in UAE?

Auditing is compulsory for running businesses in the UAE to ensure that companies comply with regulatory requirements and maintain transparency and accountability in their financial reporting. Meanwhile, the UAE has implemented strict financial regulations and reporting requirements to maintain a stable and transparent business environment.

2. What is internal control in auditing?

Internal control in auditing refers to the policies, procedures, and systems a company has in place to safeguard its assets, ensure the accuracy and reliability of its financial reporting, and comply with applicable laws and regulations.

Internal control systems are designed to provide reasonable assurance that the company’s objectives are being achieved and that the financial statements are free from material misstatements.

3. How can we get auditing services in Dubai?

You can get auditing and assurance services in Dubai by hiring audit firms in Dubai, contacting professional associations, referrals from business associates, friends, or family members who have used auditing services in Dubai, or you can conduct an online search to find auditing and assurance firms in Dubai. You can read reviews and ratings from other clients to help you make an informed decision. Emirates Business Setup helps you to get your accounting and auditing accomplished and ensure the activity runs smoothly and effectively. However, if you are looking for it, then contact us now!

4. What do you mean by advanced auditing?

Advanced auditing uses advanced techniques, such as data analytics, risk-based auditing, and forensic auditing, to gain a more comprehensive and detailed understanding of a company’s financial statements and internal control systems. These techniques allow auditors to identify potential risks and irregularities and provide more tailored and effective audit procedures.

5. What audit firms in Dubai does?

Auditing is generally compulsory for all organizations required to prepare financial statements. However, this includes public and private companies, non-profit organizations, and government entities. Auditing provides an independent and objective evaluation of a company’s financial statements, internal controls, and compliance with laws and regulations. Auditing company in Dubai is essential to maintain the integrity and reliability of financial information, which is vital for decision-making by stakeholders, such as investors, creditors, and regulators. However, auditing is a critical aspect of corporate governance and accountability for all organizations.

Get in touch With Our Team of Experts

Fill out the form below to contact us!

Cost Calculator

Fill the form details to calculate cost.

Not sure where to begin on your business journey? Our experienced business consultants are here for you.