Accounting and Audit in Dubai, UAE - Morison Menon

Accounting service in the United Arab EmiratesAccounting service as a profession has come a long way in the United Arab Emirates (UAE). The profession has constantly endeavored to keep pace with the ever-growing business needs stemming from the significant growth in the economy witnessed over the years. From being perceived as a peripheral service, the profession has evolved to become pivotal, in the line of services. As a result, the number of accounting firms providing audit and assurance services have been on the rise over the years. Many international accounting firms have their affiliates in the UAE operating as functionally independent offices but complying with the procedures followed by the principal. These procedures are generally based on the international standards. As part of quality control standards, the affiliates are subject to peer reviews conducted by their principal on a periodic basis.Apart from the external audit, many Accounting UAE firms provide assurance services such as internal audit Dubai, business valuations etc. Many medium to large size business organizations outsource their internal audit function to the Accounting Dubai firms so as to benefit from values of professional independence.

Need for auditThe UAE Commercial Companies Law requires all companies incorporated locally, to file audited financial statements on an annual basis with the Ministry of Economy. It also requires the auditor to comply with the reporting requirements of the law. Sole proprietorship concerns are not within the purview of the company formation Dubai law. In case of listed companies, there are regulations to be complied with, regarding filing of returns with the relevant regulatory authority.The company set ups Dubai in various free zones in the UAE are governed by the respective free zone regulations. The free zones have made it mandatory for all entities to submit audited financial statements on an annual basis with the relevant free zone authority within a period of three months from the financial closure date.Where the activities are leveraged, the financial institutions like banks require companies to submit the audited financial statements on an annual basis to extend or renew the facilities. There are other companies who have operations across the globe as a result of which company formation UAE will require to be audited for consolidation purposes. Similarly, in case of private companies, the shareholders might require audit for assurance purposes.

Accounting and audit frameworkAlthough there is no specific financial reporting framework required to be followed by law, the International Financial Reporting Standards (IFRS) is widely used and accepted. The Central Bank of UAE has made it mandatory for banks to prepare financial statements based on IFRS. Similarly, the listed companies prepare financial statements as per IFRS. In case of private companies, the shareholders, banks and other stake holders require financial reporting based on IFRS.

In the absence of any local auditing standards, the Audit UAE are generally conducted based on the International Standards on Auditing (ISA). Accordingly, the Dubai Accountants design audit procedures and documentation based on ISA. Audit opinion is expressed on the financial statements based on the procedures carried out and whether the financial statements comply with the reporting framework.

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Morison Menon Chartered Accountants provides professional advisory services in the areas of Accounting Dubai, Dubai Accountants, Accounting Services, Internal Audit Dubai, Audit Services, Audit Dubai, business consulting, UAE Accountants, Business services, business valuation, hr consulting dubai, consulting services, due diligence, incorporate in Dubai, performance consulting, incorporate in UAE, process consulting, Incorporation help and set up services in Dubai, UAEFor more information visit : http://www.morisonmenon.com/