UAE has set up many Freezones to allow investors or people to set up their company in the country and operate it without worrying about taxation. These Freezones deliver many advantages and services during the complete duration of the business; One such free zone is the DMCC or Dubai Multi Commodity Centre. DMCC is a global trading and financial hub. Also, one of the largest free zones in the UAE.
Established in 2002 by the UAE government, DMCC is the fastest growing free zone in UAE. It has a variety of business options, including the trading of gold, diamond, stones, and pearls. Thus, the External Auditing process becomes essential for DMCC companies. It benefits companies in the DMCC free Zone by identifying possible frauds, misdoings, and inefficiencies. And provide accurate insight and examine software, processes, technologies, and the company’s methodologies. However, to carry out the External Audit process, the Auditors must have an approved license. The external Audit process is essential to facilitate transparency, fairness, and objectiveness to stakeholders, shareholders, and banks to make informed decisions concerning the company’s financial status. Also, the appointed auditor must be listed in the approved auditor list (AAL) and registered as an approved Auditor with DMCC.
What is the external audit process and its importance for DMCC companies?
The external audit process is the independent examination of the business’s financial statements. An approved professional Auditor operates the External Auditing process. To carry out the process, the External Auditor must have a license from a reputed Auditing firm & must be listed in the approved auditor list (AAL) and be an approved Auditor with DMCC.
The External Auditor reviews the transactions and balances of the company’s financial records for the DMCC companies.
What is the importance of the external auditing process in DMCC companies?
An external audit process improves the internal controls systems of DMCC companies allowing them to identify deficiencies in the financial systems. If found any, recommendations are made, thus making the business more efficient and less prone to fraud. The external Audit process promotes best practices and assures compliance with rules, regulations, and standards set for the companies.
What is the main focus of an external audit process for DMCC companies?
The main aim of the External Audit process is to deliver a valid independent examination. The Audit process verifies that the financial statements are accurate and fair reflection and where the organization stands financially. The External Auditor prepares the documents properly
heeding the accounting standards.
Has the External Auditing process been made obligatory for DMCC companies?
Yes, it is mandatory to conduct an External Audit for DMCC companies. Each DMCC Free Zone company anticipated keeping its audited financial reports for the past five years. A fine of up to AED 5,000 is penalized if a company fails to submit the required documents to the free zone authority, or the Authority may also reject the trade license at the time of renewal. The External auditing process has been a great assistance in maintaining all the necessary documents required by the organization and also aids the added purpose of enabling the company to file VAT at the end of every tax period.
Now that you know theExternal Audit Process and its Importance for DMCC companies. Read on to learn how RVG Accounting & Bookkeeping LLC can help you with all your auditing and accounting needs in DMCC.
The RVG Accounting and Bookkeeping LLC has assisted many businesses, be it small or international companies; Our team consists of professional Auditors that help you achieve your goals. They identify areas for progress and give suitable suggestions, thus, helping in successful business operations. Contact us for a successful External Audit Process for your company in DMCC. We would be happy to assist!
Also, here is the list of the best Audit firms in Dubai for your reference.