Do All Companies Need to Be Audited?
February 23, 2020
Audit requirement depends on the jurisdiction of where the company was formatted. In UAE, companies that are structured on the mainland are mandated to be audited, while those in the free zone authorities may be audited depending on the rules and regulations or legal framework of the authorities.
Companies that are not under the mandate of being audited are encouraged to undergo an audit anyway to ensure that their company is going the way that they plan and are not experiencing any detrimental problems.
Which Companies are required to Be Audited?
Under the Commercial Companies Law, all companies in the mainland are required to have their financial accounts be audited. These companies have to keep their financial records for at least five years.
Companies that are situated in the free zones are necessarily to get audited. Free zone authorities require companies to submit an audit report. This includes free zone companies (FZCO) and free zone establishments (FZE). However, even if free zone authorities do not require the submission of an audit report for certain companies, they should not overlook the fact that an audit report should be prepared for the company itself.
In this year, the tax system is already in play, companies will surely find it more necessary to maintain their accounting records and be audited as well. This will give them more insights on which part of the company needs more attention and how the management can assist in taking care of it.
We are well versed with laws and rules and regulations in the UAE and we can help you to be compliant in terms of keeping your financial records and being audited.Click here to contact our audit team to will help you identify the best option that services your business.