Audit & Assurance
An audit is the systematic inspection and examination of the company accounts, vouchers, and documents by an independent body to ascertain how the financial statement of the company is presented in a true and fair matter as required by the law.
Article 27 of theFederal Law No. 2 of 2015 on Commercial Companies, states that the “accounts of the Company Every Joint Stock Company or Limited Liability Company shall have one or more auditors to audit the accounts of the company every year. The other types of companies may appoint an auditor in accordance with the provisions of this Law.”
This law applies to any companies which practice any commercial, financial, industrial, agricultural, real estate or other kinds of economic activity on the mainland except the following:
companies excluded by resolution of the UAE Cabinet
companies wholly owned by federal or local governments and companies held in full by such companies, if a special provision to this effect mentioned in the company's memorandum
companies operating in certain oil, gas and power sectors in which the federal or local government directly or indirectly holds 25%, provided a provision to this effect is mentioned in its MOA.
For companies operating in Free Zones, the laws which are applied vary dependent on the governing body so audits may not be necessary. It is always wise to check with professionals to see if your business is subject to a mandatory audit rather than fall foul of the law and the various financial penalties that will be imposed.
As one of the top accounting and auditing firms in Dubai, MZ Auditing & Consultancy not only prepare impartial and accurate records for submission but can help our clients to improve their business practices and increase the bottom line. We can also identify challenges that our clients' businesses are facing and identify potential solutions to overcome these pain points.
Through the audit process, we can also reduce financial risk to our clients through exposure to fines due to non-compliance.
Alongside meeting legal requirements, audits can benefit a company in the following ways:
· Detect & Prevent Errors or Fraud
· Ease business Sales
· Maintaining the accounts in the company
· Obtaining a Loan
· Determine if the company generates a Profit/Loss
· Compare the performance of the company to the previous year’s performance
· Preparing for a future plan
· Increase Company Goodwill
· Helps in Taxation
MZ Auditing can examine and check the arithmetical accuracy of the accounts, verify and validate transactions, confirm the existence of assets and liabilities value, check the distinction of capital and revenue transactions, and prove that the financial statement is presented in a true and fair matter.