ROLE OF APPROVED AUDITOR IN DMCC
DMCCA – Dubai Multi Commodities Centre Authority DMCCA : According to the implementing regulations, a DMCC Member Company has to upload the auditor’s signed & stamped Audited Financial Statements Summary Sheet and the Audited Financial Statements Report via a designated online service request on the member portal within 90 days after the end of each financial year. As per the Approved Auditors Rules (AAR) issued on 12th January 2017, it is the responsibility of each DMCC member company to ensure that their appointed auditor is registered as an Approved Auditor with DMCCA and is listed in the Approved Auditors List (AAL). These rules do not apply to auditors appointed to audit DMCC member companies registered as a branch company provided such a company has a group auditor.
GUIDELINES to Submit Audit Report t0 DMCCA
Follow the below process steps for a successful submission:
Members are requested to advise their auditors to download the template “Company Audited Financial Statements Summary Sheet”, which can be found at www.dmcc.ae/managing-acompany > Compliance Services > Company Audited Financial Statements Summary Sheet.
The auditor will then need to complete, sign and stamp the Company Audited Financial Statements Report Summary Sheet and print it on the auditor’s letterhead along with the Audited Financial Statements report.
Once members have the two documents prepared, signed and stamped by the auditor, they will need to log on their portal and go to Company Services, then click on Compliance Services, where they will need to create a service request titled “Submit Company Audited Financial Statements Summary Sheet and Report”. Please note that this service request is free of charge.
Members are requested to fill out the fields by entering the numbers and details as stated in the “Company Audited Financial Statements Summary Sheet”.
Members are requested to tick the declaration box to confirm that the information provided is true and correct; noting that it is an offence to enter false information. Then, click “Save”.
Members are required to update the Auditors Details by choosing the Listed Auditor Name from the drop down list.
Members will then need to upload the following two documents and then, press“Submit”.
• Audited Financial Statements Report (Only copy is required)
• Audited Financial Statements Summary Sheet (Only copy is required)
An Approved Auditor is at all times accountable for compliance by the Audit Firm with these Rules.
- An Approved Auditor must complete the Auditor’s Report in accordance with Section 11 of the Company Regulations. In performing its role pursuant to Section 11 of the Company Regulations, the Approved Auditor must ensure the following :
- The annual accounts are approved by the board of directors of the Member Company and signed on their behalf by at least one of them.
- The Audit Report is signed and stamped by the Audit Partner
- The Summary Sheet is completed fully and accurately based on the information provided in the AFS and signed and stamped by the Audit Partner.
The role of the Approved Auditor is to obtain reasonable assurance that the annual accounts prepared by the Member Company are free from material misstatements, whether due to fraud or error and are properly prepared in accordance with International Financial Reporting Standards.
Without limitation to the generality of the above Rule, the Approved Auditor must ensure the following:
The Auditor’s Report must state :
- whether in the Approved Auditor’s opinion, the accounts have been properly prepared in accordance with International Financial Reporting Standards.
- The accounts give a fair and true view of the profit and loss of the Member Company for the relevant financial year .
- The state of the Member Company’s affairs at the end of the financial year.
- That the Member Company is undertaking only activities permitted under its commercial licence .
- Any of the following, when applicable to the annual accounts:
- An “adverse opinion”
- A “disclaimer of opinion”
- A “qualified opinion
- Any other matter or opinion required by DMCC from time to time.
Approved Auditor is satisfied that :
- The financial period and share capital stated in the annual accounts are validated according to the Articles of the Member Company.
- Bank balances are confirmed by the banks.
- Any absence of a Member Company bank account is highlighted.
- Salary expenses are disclosed in the annual accounts.
- All notes have been fully and properly detailed.
- Revenue generated from commercial activities that are outside the scope of licensed activities are disclosed as other income.
The Approved Auditor must conduct itself in accordance with the following principles:
Principle 1 Integrity :
The Approved Auditor must act with integrity at all times.
Principle 2 Due skill, care and diligence, including professional competence :
The Approved Auditor must act with due skill, care and diligence in performance of professional audit services to its appointing Member Company. The Approved Auditor must ensure that its employees enhance their knowledge, skills, and other competencies through continued professional development to ensure they remain current on all changes in law, regulation and practice.
Principle 3 Objectivity :
The Approved Auditor must maintain impartiality and avoid any conflict of interest.
Principle 4 Confidentiality :
The Approved Auditor must maintain the confidentiality of information acquired in the course of their appointment with the Member Company. Disclosure of confidential information is permitted if required by law including for the purposes of investigation and/or enquiry by DMCC.
Principle 5 Cooperation with DMCC :
The Approved Auditor must deal with DMCC in an open and cooperative manner and must disclose information regarding a Member Company reasonably required by DMCC.
Note: The original Company Audited Financial Statements Summary Sheet should be kept safely in the company’s possession and made available upon request by the DMCC Inspection Team.
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