An Overview To DAFZA In Dubai UAE
Most business owners are usually reluctant to get their companies audited because of the great hassle attached to the process. There’s a lot of preparation needed, and it also reveals several faults and errors that some people do not wish to uncover. However, for any company to grow and achieve success, it must go through audit processes.
The UAE government has made it mandatory for companies to conduct a yearly audit. However, for companies that aren’t bound to undergo audits, like those that are in free zone areas, they conduct external audits with the aid of auditing companies in DAFZA.
The Need For Audit
As stated above, the majority of the companies in the UAE are obligated by the government to conduct yearly audits, but some businesses still conduct external or internal audits depending on the higher up’s decision.
Financial statements produced by auditors are highly crucial for a company to be considered by lending firms, banks, and creditors when a request for a loan is made. Any investor needs concrete reasons to put their money in the business, and these audited financial statements are good enough to convince investors to go ahead.
Owners of businesses get audits to have their financial statements evaluated to make sure whatever they present is accurate and fair. Internal matters are audited by people who are a part of the company, well-versed with the company’s standards, whereas external audits are done by an external party that is an auditing firm hired by companies. Also, it’s important that the external auditor does not have any ties with people inside the company so there’s no bias.
Important Steps In The Audit Process
Preparing Documents
In most cases, companies contact third-party firms to get in touch with a reputable audit firm. When this agreement between the company and the third party commences, this third party firm that is responsible for finding the auditor, will request all necessary documents.
The company will be provided with a checklist that will mention all the documents required for the audit. Generally, papers needed are a copy of the last audit report, financial statements, bank statements, ledgers, receipts, bills, and etc. Sometimes other documents are also required, which may include copies of minutes of the board committee meetings, rules and regulations of the company, and other important documents.
Preparation For The Audit
Preparing Reports
Audit Services For Companies Registered in DAFZA
DAFZA is a center for global trade, established back in 1996. This Dubai airport-free zone happens to be one of the most vibrant zones allowing free trade for all types of businesses. This is located nearly the busiest international airport, which also plays a great role in attracting a lot of investment activity in the region.
DAFZA is said to be the ideal gateway to the Middle East, Europe, and the subcontinent. This independent free zone is managed by particular management that is responsible for all business operations being conducted in the free zone. Any company existing over here has very few limitations while carrying out their daily operations and fund transfers, in and out of the zone.
DAFZA Free Zone External Audit Requirements
DAFZA has made external audits an important requirement. All companies must renew their business license at the end of every year, and while renewing, company owners are required to submit their external audit report provided by authorized and approved auditors in DAFZA.
Perks Of External Audit In DAFZA
- Renewal of business licenses.
- Auditors in DAFZA will assist you in understanding the business insights.
- All invalid and wrong practices are uprooted
- All processes like tax proceedings, accounting, bookkeeping, and many more are streamlined
- External audit helps in business expansion.
- This audit also helps businesses understand their financial stability
- External audit provides all the other stakeholders like investors, banks, and other institutions the needed confidence to invest in DAFZA registered companies
