An external audit gives an independent opinion on a company's financial statements. The scope, reporting deadline and auditor requirements depend on the company's jurisdiction, legal form and reporting obligations. Contact Gulf Bridge to discuss your company's requirements and the documents needed to prepare for an audit.
When does a UAE company need an audit?
An audit may be required by company law, a free zone authority, tax rules, a lender or shareholders. Requirements differ between jurisdictions. Before commissioning the work, confirm the reporting period, submission deadline and whether the authority requires an auditor from an approved list.
Free zone registration does not automatically exempt a company from corporate tax or financial reporting obligations. A company seeking Qualifying Free Zone Person status must meet the applicable conditions, including requirements relating to audited financial statements.
External audit, internal review and tax audit
External financial audit. An independent auditor examines the financial statements and supporting evidence and issues an audit opinion. Confirm the auditor's registration and any approval required by your authority.
Internal audit or controls review. This examines how the business manages risks, transactions and internal controls. It serves a different purpose from an independent audit opinion on annual financial statements.
Tax audit. A review carried out by the tax authority is distinct from a financial statement audit. Preparing accounting records and checking tax filings can help a business respond to requests for supporting evidence.
What to prepare before the audit
- Trade licence, incorporation documents and details of the company's ownership.
- Trial balance, general ledger and financial statements for the reporting period.
- Bank statements and reconciliations.
- Sales and purchase invoices, contracts and records supporting significant transactions.
- Payroll, fixed asset and inventory records where relevant.
- Tax returns, supporting schedules and the previous audit report, if available.
The auditor may request additional documents based on the business and identified risks. If records are incomplete, start with bookkeeping and account reconciliation before agreeing the audit timetable.
How the audit process works
- Confirm the requirements. Identify the authority or recipient, reporting period, deadline and required auditor approvals.
- Agree the scope. The appointed auditor sets out the engagement terms, responsibilities, expected documents and fee.
- Prepare the records. Reconcile balances and assemble supporting documents so that the auditor can test the financial information.
- Answer audit queries. Management provides explanations and evidence and considers any proposed adjustments.
- Complete the report. The independent auditor finalises the opinion. Management arranges submission where required.
Discuss audit preparation with Gulf Bridge
Tell us where the company is registered, its activity, the reporting period and the deadline you need to meet. We can discuss the accounting work needed before the audit and the next steps for your company. The audit opinion must be issued by an appropriately authorised independent auditor.
For ongoing recordkeeping and reporting, see our accounting services in the UAE.
Questions about company audits in the UAE
Is an audit compulsory for every company?
There is no single answer covering every legal form and jurisdiction. Check the rules for your company and any separate requirements from its free zone authority, tax status, bank or shareholders.
How long does an audit take?
The timetable depends on the volume of transactions, the condition of the records, the scope and how quickly queries are resolved. Agree it with the auditor after the records have been reviewed.
Does an audit replace bookkeeping or tax filing?
No. Bookkeeping records the company's transactions; tax filings report its tax position. An independent audit examines the financial statements. The company remains responsible for maintaining records and meeting filing deadlines.
How should I choose an auditor?
Check registration, independence, relevant industry experience and acceptance by the authority receiving the report. Ask for an engagement letter that explains the scope, required documents, fee and timetable.
