- Auditing
Why Is Auditing Important for Businesses in UAE?
Maintaining a company’s financial stability and legal standing depends on auditing to some extent. Annual audits are required by law for many organizations in the United Arab Emirates, particularly in free zones like RAKEZ (Ras Al Khaimah Economic Zone).
Here are some reasons why auditing is important for your RAKEZ-based company:
As per the UAE regulations, just like other free zones, RAKEZ also requires to maintain up-to-date financial records and submit audited financials on a yearly basis. Through its free zone policies, the free zone authority demands that companies under RAKEZ comply with audit requirements. Non-compliance may result in penalties, non-renewal of licenses, or reputation damage.
With proper auditing, as a business owner, you will get a comprehensive view of financial performance. That helps you in making well-informed decisions. You can improve on investment strategies and expand your business. Also, smart budgeting is possible with precise data.
Companies are required to have accurate and audit-ready accounts as the UAE adopted corporate tax and VAT. An accredited audit ensures FTA compliance and helps you identify any discrepancies.
Trust is built with audited financials. Whether you have partnerships, need loans, or are pitching to investors, a certified audit proves your business is open and trustworthy.
- Why Auditing
Advantages of Expert Auditing Services
In addition to saving money, outsourcing your accounting services in the UAE provides you with access to a group of experts who are knowledgeable about UAE tax regulations, reporting requirements, and sound financial practices. Here are some advantages for your company:
Compliance with the Law
Fulfill the RAKEZ guidelines and the UAE Commercial Companies Law's compulsory audit requirements.
Increased Credibility of the Business
Investors, banks, and stakeholders have greater trust in audited financials. It's a clear sign that your company is financially sound and well-managed.
Transparent Financial Overview
Professional auditors provide unbiased, factual data regarding your firm's financial status, enhancing forecasting, budgeting, and managing cash flows.
Being Prepared for Tax Audits
Audits ensure your books are correctly prepared and ready for any tax inspection or review, now that the corporate tax system in the UAE is up and running. This minimizes the risk of penalties or legal problems.
Detecting and Preventing Fraud
In detecting financial discrepancies, internal control deficiencies, or suspect transactions that may lead to fraud or leakage of revenues, audits prove to be a strong tool.
- Our Services
Our Core Auditing Services
We offer a full scope of auditing services that cater to businesses operating in the RAKEZ Free Zone as well as other UAE jurisdictions.
External Audit
A mandatory audit by law that verifies your financial reports and ensures they are consistent with RAKEZ regulations and UAE accounting principles. We forward audit reports directly to the relevant authorities.
Internal Audit
A comprehensive review of operation risks, compliance loopholes, and internal procedures. Your internal controls are enhanced and inefficiencies reduced through this audit.
VAT Audit
A VAT audit confirms that your VAT returns are accurate and in line with FTA rules. It’s an essential step to avoid fines and ensure legitimate VAT refund claims.
Audit of Financial Statements
Thorough review of cash flow, equity, balance sheets, and income statements to ensure accuracy, reliability, and compliance with IFRS standards.
Free Zone Audit Reports
For RAKEZ and other free zone authorities, we prepare and issue audit reports that meet free zone regulations, ensuring timely submissions for authority approval or license renewals.
Due Diligence Audit
Ideal for mergers, acquisitions, and investments. As part of the process of finalizing business transactions, this audit evaluates a company’s financial and legal position.
- Our Process
Our Audit Process
Step-by-Step Approach
Aurum offers prompt, high-quality audit services in a structured, client-centric way.
To understand your business model, gather initial documents, and define the scope of the audit, we initiate a free consultation.
You submit the required financial documents, such as:
- General Ledger
- Profit & Loss Statement
- Balance Sheet
- Bank Statements
- VAT Returns
- Invoices & Receipts
- Payroll & Expense Records
If required, we also coordinate with your in-house accountants or bookkeeping service provider.
Our auditors schedule the audit plan, task-allocate, and begin processing your documents. This includes account reconciliation, internal control testing, and cross-verifying.
We provide you with a draft report to consider once the audit is complete. You may request alterations, ask questions, or clarification before finalizing.
The certified audit report is sent to RAKEZ or relevant authorities after your approval. It is also provided to you for use in-house and for investor presentations.
- Frequently Asked Questions
Your Common Questions Answered
Are RAKEZ companies obligated to conduct audits?
To renew its license and remain compliant with the regulations, RAKEZ requires audited financial statements.
How are internal and external audits different from each other?
Whereas external audits verify financial statements to ensure legal and tax compliance, internal audits assess operational risk and internal controls.
How long does the audit process typically take?
Usually, two to four weeks, depending on complexity, availability of records, and company size.
What documents do I need to provide?
You need bank records, financial statements, VAT filings, invoices, and records from your bookkeeping service provider.
Can auditing benefit RAKEZ startups?
Legal compliance at the outset, enhanced financial planning, and investor attraction are all made easier by audits for startups.
What is the cost of a professional audit?
The company size and services required ascertain the fees. Contact us for a free quote.
Are Aurum’s auditors certified by UAE authorities?
All of our auditors are licensed and certified by RAKEZ and other government and free zone authorities.
Do you help with audit report submissions?
On your behalf, we handle submissions to RAKEZ and other concerned organizations.
Is my company's VAT registration subject to an audit?
A VAT audit ensures your filings are correct and keeps you in good books with the tax authorities in the long run.
Can you audit several entities belonging to a single group?
We can conduct group audits for holding companies or business groups that operate in several zones.