Audit

An audit is the systematic inspection and examination of the company accounts, vouchers, and documents by an independent body to ascertain how the financial statement of the company is presented in a true and fair matter as required by the law

“Accounts of the Company Every Joint Stock Company or Limited Liability Company shall have one or more auditors to audit the accounts of the company every year. The other types of companies may appoint an auditor in accordance with the provisions of this Law.”

Article 27 of the Federal Law No. 2 of 2015 on Commercial Companies, states

This law applies to any companies which practice any commercial, financial, industrial, agricultural, real estate or other kinds of economic activity on the mainland except the following:

Companies excluded by resolution of the UAE Cabinet

Companies wholly owned by federal or local governments and companies held in full by such companies.

companies operating in certain oil, gas and power sectors in which the federal or local government directly or indirectly holds 25%

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Through the audit process, we can also reduce financial risk to our clients through exposure to fines due to non-compliance.

Alongside meeting legal requirements, audits can benefit a company in the following ways:

  • Detect & Prevent Errors or Fraud
  • Determine if the company generates a Profit/Loss
  • Preparing for a future
  • Increase Company Goodwill
  • Ease business Sales
  • Obtaining a Loan
  • Compare the performance of the company to the previous year’s performance
  • Helps in Taxation

For companies operating in Free Zones, the laws which are applied vary dependent on the governing body so audits may not be necessary. It is always wise to check with professionals to see if your business is subject to a mandatory audit rather than fall foul of the law and the various financial penalties that will be imposed

As one of the top accounting and auditing firms in Dubai, Finapt Consultants not only prepare impartial and accurate records for submission but can help our clients to improve their business practices and increase the bottom line. We can also identify challenges that our clients' businesses are facing and identify potential solutions to overcome these pain points.