According to the Commercial Companies Federal Law, No.32 of 2021, all the companies in the Mainland UAE have to get their financial accounts audited. The companies in the UAE have to keep their financial records up to date for at least five years to comply with the requirements.
The audit done by a third party is known as an external audit. The third party is someone who is not associated with your company, such as auditing firms and tax agencies. An external audit is a way to confirm that the financial records kept in a company are real and correct. It shows a transparent picture of the company’s financial situation.
Companies need to prepare themselves for tax audits conducted by Tax Authorities. These audits involve scrutinizing accounting and bookkeeping records as well as VAT return filings to confirm the tax liability of the taxpayer. The tax audit assesses a company’s objectives, planning methods, procedures, and operational outcomes concerning tax compliance, including VAT, Excise tax, and Corporate tax.
Our tax audits in the UAE are categorized into three types:
1. Corporate Tax Audit
2. Excise Tax Audit
3. VAT Audit
Audits are crucial for companies to ensure they are following the correct rules and procedures in their operations and checking if everything meets industry standards. They also help shareholders pinpoint any issues in the company’s control processes. Audits can include financial audits or comprehensive company-wide assessments.
The benefits of having a good team of auditors are
By carrying out an internal audit, you have the opportunity to understand and address factors that compromise your company's internal controls.
Auditing also help the companies in recognizing fraud. Thanks to technology and better audit methods, it's harder to hide fraud these days. company-wide assessments.
The importance of conducting audits extends to various aspects, including verifying the accuracy and adherence of financial statements and records to relevant standards.
Companies need to prepare themselves for tax audits conducted by Tax Authorities. These audits involve scrutinizing accounting and bookkeeping records as well as VAT return filings to confirm the tax liability of the taxpayer. The tax audit assesses a company’s objectives, planning methods, procedures, and operational outcomes concerning tax compliance, including VAT, Excise tax, and Corporate tax.
Tax agents registered with the Federal Tax Authority (FTA) in the UAE provide businesses with tax audits to ensure correct VAT compliance. It is advised not to engage with tax agents who are not registered with the FTA.
Our tax audits in the UAE are categorized into three types:
Audits are carried out to check if the business is following industry standards and detecting any possible event of frauds. The audits are in the company’s favor as they help in minimizing risk and mitigating loss by analyzing the company’s weaknesses. Availing services from top auditing companies in Dubai ensures the rules and regulations are followed.
