DAFZA Approved Auditors in Dubai
DAFZA Approved Auditor
Auditing firms in Dubai are the backbone of any organization. A strong audit firm is a critical part of your business’s success.
Dubai Airport Free Zone is one of the most important business hubs in the world. It’s a vibrant, thriving environment that is home to some of the most exciting companies in the world. But with so many businesses situated here and so much activity, it may be challenging for enterprises to manage their finances and make sure they have the resources they need to grow.
Why Are Audits from Approved Auditors Required in DAFZA?
Businesses operating in the Dubai Airport Free Zone must have the DAFZA-approved auditor audit their books of accounts because:
- It is prohibited for audit companies that are not registered with the Dubai Airport Free Zone Authority (DAFZA) to perform audits, liquidations, or offer any other services to DAFZA-licensed businesses.
- Auditing is required for both Free Zone Establishments (FZE) and Free Zone Companies (FZCO). The purpose of this criterion is to ensure that the registered businesses abide by national and international laws such as the International Financial Reporting Standards (IFRS), Anti Money Laundering (AML), and Combating Financing of Terrorism (CFT).
- The DAFZA-accredited auditor is expected to carry out investigations to determine whether the business has kept the correct and comprehensive records as required by the Federal Tax Authority and the Ministry of Finance (FTA).
DAFZA-approved auditors are knowledgeable about all the laws and norms that apply to your company and can assist you in ensuring that you are abiding by them.
What Is a DAFZA Approved Auditor?
A DAFZA approved auditor is an audit firm authorized to provide audit services for companies registered in the Dubai Airport Freezone (DAFZ). The auditor independently examines a company’s financial statements, accounting records and supporting documents and issues an audit report in accordance with the applicable financial reporting and regulatory requirements.
| DAFZA Audit Requirement | Details |
|---|---|
| Free Zone | Dubai Airport Freezone (DAFZ) |
| Auditor | Approved audit firm where required by DAFZ |
| Audit | Review of financial statements and supporting accounting records |
| Reporting | Prepared according to the applicable financial reporting framework |
| Purpose | Financial reporting and applicable DAFZ compliance requirements |
DAFZA Audit Process
The DAFZA audit process generally involves preparing the company’s financial records, appointing an appropriately approved auditor, completing the audit review and meeting the applicable Dubai Airport Freezone (DAFZ) reporting or submission requirements.
| Step | What Happens |
|---|---|
| 1. Prepare Accounting Records | Organize ledgers, bank statements, invoices, expense records, reconciliations and other supporting financial documents. |
| 2. Prepare Financial Statements | Prepare the company’s financial statements for the relevant financial year using the applicable financial reporting framework. |
| 3. Appoint an Approved Auditor | Engage an appropriately approved auditor to conduct the audit required for the DAFZ-registered company. |
| 4. Audit Review | The auditor examines the financial statements, accounting records, transactions and supporting evidence and may request additional information. |
| 5. Audit Report | After completing the audit procedures, the auditor issues the applicable independent audit report based on the findings. |
| 6. Complete the DAFZ Submission | Complete the applicable audit reporting or submission process within the deadline and requirements relevant to the company. |
Why You Should Choose Us?
- We have 30+ years of experience working with businesses in the Dubai Airport Free Zone (DAFZA) and around the region, so we are aware of what it takes to select an auditor who will help you move through this process quickly and easily.
- Farahat & Co. is dedicated to providing you with high-quality services that help you expand your business—and that includes going above and beyond the call of duty when it comes to locating the ideal audit firm for your requirements.
- We provide a wide range of quality services including forensic accounting, legal accounting, liquidation and insolvency, VAT accounting and consulting, compliance and corporate governance, HR management, company deregistration, management control audits, payroll accounting outsourcing, internal control reviews, fraud examinations, among many others.
- We also provide consulting services for businesses looking for help from external auditors to ensure adherence to global standards and guidelines set by governing bodies like IFRS and AICPA.
FAQs
What is a DAFZA approved auditor?
A DAFZA approved auditor is an audit firm approved to provide audit services for companies registered in the Dubai Airport Freezone (DAFZ). DAFZ maintains an official list of approved audit firms for companies that are required to conduct annual audits.
Is an annual audit mandatory for DAFZ companies?
Yes. According to DAFZ, companies registered as FZE and FZCO entities are required to conduct an annual audit of their financial statements using an auditor approved by the authority. Different requirements may apply to other permit types, such as the Talent Pass.
How often do DAFZ companies need an audit?
DAFZ requires registered FZE and FZCO companies to conduct an annual audit of their financial statements. Companies should prepare their accounting records and supporting documents for each applicable financial year.
What is the deadline for a DAFZ audit?
Companies should complete their annual audit and any applicable submission requirements within the deadline specified by DAFZ for their entity and financial year. Businesses should confirm the current deadline through DAFZ or their applicable client portal before submission.
Why should a DAFZ company appoint an approved auditor?
DAFZ requires FZE and FZCO companies to conduct their annual financial statement audit through an auditor approved by the authority. Using an appropriately approved audit firm helps ensure that the auditor meets the applicable DAFZ requirements for the audit.
What documents are required for a DAFZ audit?
The exact requirements depend on the company and audit scope, but commonly requested documents include:
- Financial statements and general ledger
- Bank statements and reconciliations
- Sales and purchase invoices
- Expense records and supporting documents
- Trade licence and company documents
- Asset and liability records
- Payroll records, where applicable
The auditor may request additional documents depending on the company’s activities and transactions.
What does a DAFZ approved auditor check?
A DAFZ approved auditor examines the company’s financial statements, accounting records, transactions and supporting evidence. The audit may include reviewing revenue, expenses, assets, liabilities, bank reconciliations and other financial information relevant to the audit.
Does a DAFZ Talent Pass require an annual audit?
DAFZ currently states that holders of its Talent Pass are not required to conduct an annual audit of their financial accounts. This differs from the annual audit requirement applicable to DAFZ-registered FZE and FZCO companies.
What accounting standards apply to a DAFZ audit?
The company’s financial statements should be prepared using the financial reporting framework applicable to the entity and its audit requirements. The auditor reviews the financial statements and supporting records against the relevant reporting and auditing requirements.
How long does a DAFZ audit take?
The audit timeline depends on the size and complexity of the business, the volume of transactions and the quality and availability of accounting records. Preparing complete financial statements and supporting documents before the audit can help make the process more efficient.
How can I check whether an auditor is approved by DAFZ?
DAFZ publishes an official list of approved audit firms. Companies can check the current DAFZ auditor list before appointing an audit firm to confirm its approval status.
How can FAR Consulting help with DAFZ audit requirements?
FAR Consulting Middle East can support DAFZ companies with audit preparation, financial statement review, accounting-record checks and coordination of the audit process. Companies can also receive guidance on the documents and information required to complete their applicable audit requirements.
Request a Consultation with DAFZA-Approved Auditors!:
WhatsApp Text Message Only: +971 55 8377872
| Phone Call Only: +971 50 7869887
| Tel: +971 4 2500251
| E-mail: [email protected]