Dubai is the world’s transit destination. The Government of Dubai has extended this to the arena from air travel to the new dimension of economic trade by establishing the Dubai Multi-Commodities Center or the DMCC. Established by the Government of Dubai in 2002, the DMCC is a free zone where global trade converges and has emerged as a game-changer on the global map of economic trade. The free zone is seven times the winner of the “Global Free Zone of the Year” award by the Financial Times FDI Magazine. Currently, there are 19,000 businesses in the DMCC that range from the trade of commodities to business. The DMCC is a converging point for diverse industries such as agriculture, energy, finance, and materials such as diamond, gold, tea, and a lot more.
To maintain business credibility, the Government of Dubai has made it mandatory for all companies registered with the DMCC to appoint auditors assigned the tasks to compile yearly audit reports and manage other affairs. To strengthen the transparency of the process, a list of Approved Auditors in DMCC is provided by Dubai Multi Commodities Centre who are eligible to provide their services in the area.
Simple as it may sound, the process is sometimes confusing and intimidating, especially for start-ups.
1 Mandatory Auditing
The DMCC has made it mandatory for all registered companies to appoint an auditor for their business accounting and handling. Regardless of the scale, whether a new setup or a branch opened in DMCC, every business has approved auditors in DMCC included in their team to compile yearly audit reports and submit them to the FTA. A company that fails to comply with this rule by not providing an audit report within 90 days of year-end may be penalized through fine or non-renewal of trade license.
2 The Need for and Auditor
Auditors play a significant role in streamlining business transactions and keeping financial records up to date. They assist in budgeting, and planning, and strategizing to increase profit. Auditors are of great help in other business matters also such as closing down a business or expansions.
The DMCC is not only a free zone but is a business hub constantly striving and evolving to provide unprecedented business experience for its partners. Financial and economic experts are fully aware of the significance of expert auditors in achieving this goal and thus the compulsion of having an auditor on board. The role of an auditor in the DMCC is to compile and submit fiscal year reports to the DMCC portal. It is necessary to prevent fraudulent activities in the Free Zone. The expertise of auditors will ensure a boost in companies, which will eventually benefit Dubai’s economy.
3 Choosing an Auditor
The DMCC has made it simple to choose an auditor by publishing a list containing names of auditing and accounting firms. Businesses can choose the company and assign them the task of managing their accounts and issuing financial reports. However, the list by DMCC contains names of more than 150 firms. The confusion arises in picking the right firm. Having certain factors in mind while choosing can narrow down the search.
3.1 Credibility
The DMCC selects and registers every auditing company after thorough research and screening. All companies are experts in their fields and are reputable organizations.
3.2 Certifications
All auditors in DMCC are required to pass the required examinations and certifications. Some acquire additional certifications which add to their knowledge but also are of benefit to their client companies. An auditor with extensive knowledge and experience is preferable over others.
3.3 Expertise
Professionals in the auditing field are well equipped with the necessary knowledge and experience to understand the requirements of their clients. An expert auditor is well aware of changing trends and ways of keeping a business on top. An expert in this field will analyze several facts before recommending a plan. Some of them include:
- Scaleof business
- Yearlyrevenue generated by the business/company
- Client’sbudget
- Client’sexpectations
An expert auditor will consider these facts and a lot more to devise an effective strategy.
3.4 Comfort
It may not seem like a criterion from a business point of view. However, a company’s comfort level with its auditing firm is what closes the deal. All auditing firms provide more or less the same services. Companies pick their partner firms based on how well both understand and communicate with each other. The ability of an auditor to communicate and provide effective business plans easily understood and accepted by clients is a skill, not many possess.
4 The Final Choice
A firm that fulfills all the above criteria should be the first choice as a partner-auditing firm for the business or company. Bader Saleh is a firm where expert auditors are skilled and well adapted to the latest business strategies. We provide expert services for all types and scales of business. Feel free to contact us:
• Office # 0641, Tamani Arts Offices, Business Bay, P.O. Box 111390, Dubai, UAE
• +971 4 570 7357
• +971 58 108 5690
• info@bsauditing.com
