Statutory Audit in UAE
Statutory audit is a legally required review of the accuracy of a company's financial records by following auditing standards generally accepted in the country and obtain an understanding of the entity’s internal control by obtaining audit evidence through examination and inspection of books and stock, inquiry, observation, confirmations, analytical and other procedures.
UAE Federal Law No 32 of 2021 (Article 102 of the Commercial Companies Law 2021) stipulates that that a Limited Liability Company shall have one or more auditors to be elected by the General Assembly of the partners every year and, other than as provided by Article 245 of this Law, the provisions concerning the auditors in public joint stock companies shall apply to the auditor of a Limited Liability Company. Article 248 Duties of the Joint Stock Company Auditors stipulates that the auditor shall audit the accounts of the company, inspect the balance sheet and the profit and loss account, review the transactions of the company with the related parties and ensure the application of the provisions of this Law and the Articles of Association of the company. The auditor shall provide a report on the result of such inspection to the General Assembly and dispatch a copy of the report to the Authority.
Upon preparing his report, the auditor shall confirm the following:
- The extent of validity of the accounting records kept by the company.
- The extent of agreement between the records of the company and the accounting records.
- The auditor shall review all the records, papers and other documents of the company. The auditor may require such explanations as the auditor may deem necessary to perform his duties. The auditor may also verify the assets, rights and obligations of the company.
- If no facilities are provided to the auditor to perform his duties, the auditor shall state this in his report to the Board of Directors. If the Board of Directors fails to facilitate the task of the auditor, the auditor shall send a copy of the report to the Authority.
- The subsidiary and its auditor shall provide such information and explanations as demanded by the auditor of the holding company for the purposes of audit.
Advantages of Statutory Audit services in UAE
- Helps in improvement of company reputation.
- Helps in assessing the company’s fiscal position before doing any business with them.
- Helps in enhancing the credibility of the firm.
HALSCA is one of the best Statutory Audit firms in UAE. We will help you break down your organization for identification of issues and provide you with recommendations. Our experiences professional will help our clients to bring out effective solutions. Our premium services will help your company pass Statutory Audit requirements in UAE. Our Statutory Audit services in UAE is focused on improvement of your company. We will help you fill the gaps by giving you the best recommendations. For the best Statutory Audit Services in UAE contact us at +971 55 651 9937
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