• Sep 29, 26
• dawnuser
• Compliance & Regulation
• 0 comment

Many UAE business owners are unsure whether their company needs an audit. The answer is increasingly yes: audits are required by company law, by free zone authorities, by the Corporate Tax rules and, in practice, by banks. Here is how to tell whether an audit applies to your business.

When an audit is required

• Company law. Companies established under the Commercial Companies Law are generally required to appoint an auditor and prepare annual financial statements.
• Free zone licence renewal. Most free zones require audited financial statements before renewing a licence, and several only accept reports from auditors on their approved list.
• Corporate Tax: revenue above AED 50 million. Taxable persons with revenue exceeding AED 50 million must prepare audited financial statements.
• Qualifying Free Zone Persons. Any free zone company claiming the 0% rate on qualifying income must have audited financial statements.
• Liquidation. Closing a company usually requires audited accounts up to the liquidation date.

When an audit is not strictly required but still makes sense

• Applying for or renewing bank facilities
• Bringing in investors or selling the business
• Resolving disputes between shareholders
• Supporting a Corporate Tax position the FTA may question

What an audit involves

An independent auditor tests your records and gives an opinion under International Standards on Auditing on whether your financial statements, prepared under IFRS or IFRS for SMEs, present a true and fair view. The work typically covers revenue, expenses, bank balances, receivables, payables, related-party transactions and fixed assets.

How to prepare

1. Reconcile all bank accounts to year-end.
2. Prepare schedules of receivables, payables and accruals.
3. Update the fixed asset register.
4. Document related-party and intercompany balances.
5. Gather contracts, invoices and board resolutions for material transactions.

How Dawn Consultancy can help

We audit companies across the UAE’s free zones and mainland. See our audit services, free zone auditors and audit readiness support.

Unsure whether you need an audit? Call +971 55 441 1036, email info@dawnconsultancy.com or contact us.

This article is for general information and reflects the rules in force at the date of publication. It is not tax, legal or audit advice. Confirm the position for your business before acting.