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    Statutory Audit

    About Statutory Audit

    A Statutory Audit is a mandatory review of a business's financial records and accounts through an independent organization that is usually an accountant certified by a certification body or company of auditors. It is a requirement of law in numerous jurisdictions for certain kinds of businesses and ensures transparency as well as accountability and adhering to the regulations. The main purpose of the statutory financial audit can be used the ability to prepare assurance to the stakeholders which include creditors, shareholders, and authorities in charge of regulating the authenticity and reliability of the financial data provided by the business. Through a rigorous scrutiny of the financial records, transactions as well as internal control systems, auditors of statutory audits determine if the financial statements accurately represent the financial position of the company as well as its performance and cash flows, in line to accounting standards applicable and regulations. 

    The process of Statutory Audit Dubai requirements involves many key phases, including planning and risk assessment, testing of security controls and reporting. Statutory Auditors carefully examine financial transactions as well as policies and procedures to discover any possible mistakes or irregularities. They also look for instances of non-compliance with accounting standards and regulations. Following the completion of the audit and after the audit, auditors offer additional an audit opinion which reflects their skillful opinion on the accuracy and credibility of the financial statements.  

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    Internal Audit

    Purpose of Statutory Auditing

    The principal purpose behind the statutory audit process will be the ability to impart assurance to those who are involved regarding the accuracy, reliability and fairness of a business's financial statements. By scrutinizing the financial records, transactions along with internal audits, the statutory auditors evaluate whether the financial data provided by the business follows the applicable accounting standards and regulations requirements. This is crucial for creditors, investors or other stakeholder groups who depend on financial statements for making informed decisions regarding their involvement with the business for investing in, lending or lending credit. 

    Statutory audit firms in Dubai play vital roles in increasing transparency, accountability, and corporate governance within companies. Through exposing financial statements to independent examination, the statutory audits benefit to identify and stop fraud, mistakes, and cases of non-compliance with the law and regulatory requirements.  

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    Internal Audit

    How Statutory Audits Works?

    How Statutory Audits Works?

    Statutory Audit UAE that are required by law follow a methodical procedure for examining thoroughly the financial records of a business and financial statements. The first step is preparation, where auditors collect details about the company and its operations, as well as any relevant regulatory requirements. This is the stage that helps to develop an audit plan that is tailored to the risks and business characteristics. Then, auditors evaluate internal controls to find areas of risks and evaluate the level of trust placed on these controls during audit. Through the audit process auditors run different tests, such as the process of testing for substantives and analytical procedures, to ensure the authenticity and completeness of balances and transactions in the financial system. These tests include a thorough analysis of the supporting documents like bank statements, invoices, and contracts to assure the compliance of the accounting regulations and standards. 

    After the fieldwork is completed, auditors summarize their findings and create an audit report that provides their opinion about the credibility and fairness in the statements. The report is based on evidence that was gathered during the audit. It gives stakeholders confidence in the credibility of financial statements presented by the business.  

    Internal Audit

    Examples of Statutory Audits

    According to UAE Law, every business must undergo annual and audits that are statutory. This includes examining every financial account and transaction and making it available to the public in the event of municipal governments. This monitors government agencies, as they are the custodians of public funds. Government agencies take part regularly in these audits to assure an honest and fair distribution of the funds provided by federal agencies. For the private sector as well, it is mandatory that companies comply with this obligation, which is governed by the laws of the state in the state in which they conduct their business. e.g. a business-like ABC within the US, which frequently does business through the European region via its numerous branches could have to prepare annual audits of these businesses for the authorities of the country where they operate.

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    Internal Audit

    What are the Statutory Audit requirements?

    1

    Export and local sales data.

    2

    Administration, inventory and selling expense information.

    3

    Foreign exchange earnings and expenditures details.

    4

    Statutory dues and other levies.

    5

    Fixed assets, information on bank statements including cash receipts and payment details.

    6

    Information about secured and unsecure trade receivables and accounts payable.

    7

    Purchases made locally and imported.

    Internal Audit

    How can audit.ae help you with Statutory Audit in Dubai?

    audit.ae provides one of the best statutory audit services in Dubai. We provide an invaluable service for the statutory audit process, providing an array of services that are tailored to the specific requirements and requirements of your company. With a group of highly competent and knowledgeable auditors at audit.ae we provide expertise on accounting standards, auditing standards and frameworks for regulatory compliance to ensure that your audits are executed with precision and rigor. Through their in-depth understanding of your business's operations and financial reporting processes, audit.ae develops a customized audit plan that is focused on the most critical areas of significance and risk, maximizing the audit process while providing useful information to the individuals.

    audit.ae goes beyond the typical scope of statutory audits by providing comprehensive advisory services that enhance the effectiveness of your security, controls within the organization's internal procedures, and financial procedures. With its proactive guidance and strategic suggestions, audit.ae helps identify opportunities for improvement and the implementation of perfect practices, which will strengthen your company's overall risk and governance framework. When you have audit.ae to be your trustworthy partner you'll be able to manage the challenges of statutory audits confidently with the knowledge that you've got an expert team that is committed to delivering prompt reliable, quality, and value-added audit services that are specifically designed to meet your financial reporting and compliance goals.

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    Internal Audit

    Frequently Asked Questions

    Answers to your most common queries, conveniently compiled in one place.

    What is a statutory audit and is it mandatory in the UAE?

    Non-compliance with statutory audit requirements in the UAE can result in various penalties and legal repercussions. Companies failing to conduct statutory audits may face fines, suspension of business activities, or even dissolution. Additionally, non-compliance can damage the company’s reputation, undermine investor confidence, and lead to regulatory sanctions. Therefore, adherence to statutory audit obligations is crucial for all businesses operating in the UAE.

    Statutory audits in the UAE must be conducted by licensed audit firms registered with the UAE Ministry of Economy and authorized by the Securities and Commodities Authority (SCA). These firms employ certified auditors who possess the necessary expertise and qualifications to perform audits in accordance with international standards.

    Statutory audits in the UAE must be conducted by licensed audit firms registered with the UAE Ministry of Economy and authorized by the Securities and Commodities Authority (SCA). These firms employ certified auditors who possess the necessary expertise and qualifications to perform audits in accordance with international standards.

    Statutory audits in the UAE must be conducted by licensed audit firms registered with the UAE Ministry of Economy and authorized by the Securities and Commodities Authority (SCA). These firms employ certified auditors who possess the necessary expertise and qualifications to perform audits in accordance with international standards.