DMCC Approved Auditors List 2020

DMCC Approved Audit Firms in Duba

Dubai Multi Commodities Center (DMCC)

DMCC is one of the fastest and largest growing free zone in Jumeirah Lake Towers (JLT) in UAE and is the prime selection for new business establishment.

Compliance and Rules and Regulation:

DMCC has developed an effective compliance framework to ensure that DMCC operations are in line with local and international laws, regulations and best practice.

The Approved Auditors List Rules also mandate that all DMCC member companies must submit their Audited Financial Statements through a DMCC Approved Auditor, which will be implemented over a transitional period.

DMCC, with Rated A by Standard & Poor’s Ratings Services, is the first entity in Dubai and the second in the UAE to receive a full interactive rating from the world’s leading provider of independent credit ratings.

Steps:

The following are four simple steps in starting a business in DMCC:

  • Decide on your license type and business activities
  • Prepare and submit the online application form. (Initial application fee is AED 1,015)
  • Pay, Sign and Submit the required documents
  • Sign and submit the relevant documents for your new office space.
Requirements:

The following are the documents needed before setting up a new business in DMCC:

  • ONLINE PRE-APPROVAL APPLICATION FORM
  • PROOF OF RESIDENTIAL ADDRESS IN COUNTRY OF RESIDENCE
  • SUMMARY OF BUSINESS PLAN FOR CERTAIN ACTIVITIES
  • THIRD-PARTY APPROVALS FOR CERTAIN REGULATED BUSINESS ACTIVITIES
  • COPY OF YOUR PASSPORT
  • NO OBJECTION CERTIFICATE FROM SPONSOR (Required if holding a valid UAE residence visa.)
  • COPIES OF PARENT COMPANY DOCUMENTS (Required if setting up a subsidiary.)
  • DETAILS OF AN OFFICE ADDRESS IN DMCC FREE ZONE (JLT) (Required after your company has been registered.)
Closing a business: DMCC free zone

According to the website of DMCC, there are three types of closures. They are:

  • Summary winding up – this can be done in cases where a company has either no liabilities or is able to discharge its liabilities within 6 months and commences with a statement of solvency
  • Creditors winding up – this can be done when the company passes a resolution for winding up and is followed by a meeting with the company’s creditors
  • Bankruptcy – this can be done by the court under UAE Commercial Transactions Law No. 18 of 1993.

In DMCC, you need to apply for closing the business through the member portal. The authorities, duties, and responsibilities of the Directors of the company will be terminated as an effect of the submission of the company termination application. The application will be reviewed and processed. This will be followed by an announcement in a local Arabic newspaper. DMCC authorities will then file the final termination of the company and issue termination letters.

Why need Approved Auditors in JLT/DMCC ?

ALYA is a reputed Chartered Accountant Firm in Dubai with its head office at Business Bay and a branch office at SAIF zone with expert professionals who can help you with the registration and formation as well as liquidation and de-registration of your business in any of the UAE Free Zones.

We are approved auditors in Dubai and are listed auditors in almost all major freezones in Dubai including DMCC,DWC,JAFZA,SAIF,Maydan etc.Our market experience and the solid personal relationships which we constantly maintain with the major finance providers and business communities, we behold specialist advisory skills to support you both in the local and global market place.

With ALYA, we can help you identify the needs of your business by:

  • Providing Guidance & Support in strategizing your business plan and providing business advisory.
  • Assisting you in making the best decision in favor of the business by assessing the risk along with the management techniques of the same.
  • Assisting you in preparing the application form to be submitted to the regulatory department
  • Providing proper guidance while selecting the strategic locations of warehouse/s and/or offices.
  • Providing VAT Compliance and Advisory support for VAT Registration, VAT Implementation, VAT Return Filing
  • Tax restructuring
  • Provisions for Accounting & Book Keeping services
  • Provisions for Accounting & Financial Reporting
  • Provisions for Audit & Assurance Services

With the continuous support from our Chartered Accountants, you will get core business advice, qualitative solutions and unique experience that are specifically catered with your business needs. Alya Auditors in one of the top among the approved auditors in DMCC. Approved Auditors List 2020. 

How Long Should You Keep Business Records in UAE?

Auditing Firm in DXB

Many businesses aren’t sure how long records must be saved in the paperless era. Record-keeping is a boring, but important business activity, and if you make the wrong choices, you risk litigation, succession planning problems and the wrath of the tax man. Understanding how long should you keep business records will help you avoid these problems.

The General Rule

The Internal Revenue Service has established some basic record-keeping rules for tax documents. Outside the tax arena, there’s remarkably little guidance about how long you should keep business paperwork. Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least five years. As a rule of thumb, five years is sufficient time for defending tax audits, lawsuits and potential claims.

Specific Documents

  • Business Tax Returns and supporting records must be kept until the IRS can no longer audit your return. In most cases, the IRS can audit you for three years after a filing, but that time period extends to six years if the IRS suspects you made a “substantial error” on your return.
  • Payroll tax records, including time sheets, wages, pension payments, tax deposits, benefits and tips must be kept for at least four years after the date the taxes fell due or the date you actually paid them, whichever is later.
  • Current employee files should be retained for at least seven years after an employee leaves, is terminated or retires. However, if an employee suffers a work-related accident or files a claim against the business, it’s advisable to retain your records for up to 10 years after the claim is resolved.
  • Job applicant information must be kept for at least three years, even if you didn’t hire the applicant.
  • Ownership Records, such as business formation documents, annual meeting minutes, by-laws, stock ledgers and property deeds, should be retained permanently.
  • Accounting Services Records should be retained for a minimum of seven years. Accountants, being a conservative bunch, will often recommend that you keep financial statements, check registers, profit and loss statements, budgets, general ledgers, cash books and audit reports permanently.
  • Operational Records, including bank account statements, credit card statements, canceled checks, cash receipts and check book stubs, follow the seven year rule.

These periods are not offered as final authority, but as a guide. Your CPA, outsourced accounting service or tax attorney may recommend a different approach based on the rules of your industry and the specific needs of your business.

Audit Firms in Dubai

Auditing does not need to be an unwanted process. With one of the top audit firms in Dubai, like Alya Auditors., you can be sure that your audit process will not be as tedious or tensed as what you have been accustomed to.

There have been a number of companies from various industries that Alya Auditors auditors in Dubai have audited. We have experience and knowledge in our sleeves.

You can contact us today and book a free consultation with one of our auditors in Dubai for you to find out more about the audit.

Economic Substance Regulations in UAE

economic-substance-law-uae

​ As part of the UAE’s commitment as a member of the OECD Inclusive Framework, and in response to an assessment of the UAE’s tax framework by the European Union (“EU”) Code of Conduct Group on Business Taxation, the UAE introduced a Resolution on the Economic Substance (Cabinet of Ministers Resolution No.31 of 2019, the “Regulations”) on 30 April 2019.  Guidance that provides further clarity on the application of the Regulations was issued on 11 September 2019. The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the “Relevant Activities” listed below to maintain an adequate “economic presence” in the UAE relative to the activities they undertake. 

 
Relevant Activities:
  • Banking Business
  • Insurance Business
  • Investment Fund management Business
  • Lease – Finance Business
  • Headquarters Business
  • Shipping Business
  • Holding Company Business 
  • Intellectual property Business (“IP”)
  • Distribution and Service Centre Business​
 
 
The Regulations provide a definition to each of the above Activities. The provisions of the Regulations shall not apply to Companies in which the Federal Government of the UAE or the Government of any Emirate of the UAE, or any governmental authority or body or any of them has at least 51% direct or indirect ownership in their share capital. The Regulations apply to financial years commencing on or from 1 January 2019. Entities that are governed by the Regulations will need to submit a notification to their Regulatory Authority (defined under Cabinet Decision No (58) of 2019 issued on 4 September 2019) from 1 January 2020 onwards, and prepare and submit to the same Regulatory Authority an economic substance declaration  within 12 months from the end of their financial year (e.g. 31 December 2020 for entities with a financial year ending 31 December 2019). An entity is not required to meet the economic substance test and file an economic substance declaration for any financial period in which it has not earned income from a Relevant Activity. Failure by an entity to comply with the Regulations shall result in administrative penalties, spontaneous exchange of information with the Foreign Competent Authority (as defined in Article 1 of the Regulations), and potential suspension, revocation or non-renewal of its registration.

The Economic Substance Regulations

1.Why has the UAE introduced Economic Substance Regulations?

The UAE introduced Economic Substance Regulations to honour the UAE’s commitment as a member of the OECD Inclusive Framework on BEPS, and in response to a review of the UAE tax framework by the EU which resulted in the UAE being included on the EU list of non-cooperative jurisdictions for tax purposes (EU Blacklist). The issuance of the Economic Substance Regulations on 30 April 2019 (the Regulations), and the subsequent release of the Guidance on the application of the Regulations on 11 September 2019, was a requirement for the removal of the UAE from the EU Blacklist on 10 October 2019. The purpose of the Regulations is to ensure that UAE entities that undertake certain activities (see question 4) are not used to artificially attract profits that are not commensurate with the economic activity undertaken in the UAE.

2.What is the first reportable Financial Year?

The Regulations apply to financial years starting on or after 1 January 2019. Example 

1: A UAE company with 1 January 2019 – 31 December 2019 financial year: First assessable period would be 1 January 2019 – 31 December 2019. Example 

2: A UAE company with 1 April 2019 – 31 March 2020 financial year: First assessable period would be 1 April 2019 – 31 March 2020. No need to comply with the Regulations for the period 1 January 2019 – 31 March 2019.

3.Who are the “Regulatory Authorities”?

The Regulations are administered by the Regulatory Authorities listed in Cabinet Resolution No (58) of 2019 Determining the Regulatory Authorities Concerned with the Business Mentioned in Cabinet Resolution No (31) of 2019 Concerning Economic Substance Regulations 

Does your business fall under Economic Substance Regulations in the UAE?

If your business falls under the entities with the above-mentioned activities in the UAE, then you may need assistance to determine the applicability if Economic Substance Regulations is relevant for you as you need to analyze the implication of this new regulation in the UAE.

The team at Alya Auditors will assist you in providing preliminary assessments of your company’s current compliance obligations, and assist with possible future strategies, in response to this new legislation.

For more details on "Economic Substance" read
Source  :  Ministry of Finance Website

Is It Compulsory To Audit My Accounts?

audit Firm in Dubai-uae

There are numerous reasons you should invest in an audit for your company. As per the law, if you are running a large company, then you are obligated to invest in an audit, and you should do so even if you are running a smaller company.

For good corporate governance and an effective financial control function within your company, it is crucial for you to have an independent audit. Moreover, with an audit, the information you provide to shareholders will become more credible.

Your investors and anyone else who provides finance will feel more assured and confident about their investment. As a result, the cost of capital will be lowered and your company will become competitive and profitable.

If you hire an auditor, you will be able to:

– Aid in the identification and prevention of material error and fraud.

– Assure stakeholders like customers, employees, the investing community, pressure group and suppliers that published information is credible

– Exhibit good citizenship and corporate governance

– Facilitate the accurate and timely payment of corporate, goods and services tax, and other taxes

Is An Audit Is The Same As A Review?

It is becoming more and more common for companies to invest in a review instead of an audit because they see it as an inexpensive alternative. However, an audit is not the same as a review.

A review engagement does not provide the same level of assurance that an audit provides.

The following aspects are what distinguish an audit engagement from a review engagement:

– A greater degree of positive assurance is provided by audit engagement, often expressed in “fair and true terms.”

However, only a moderate degree of assurance is provided by review engagements. The assurance that is provided is often referred to as “negative” assurance since signs that highly improper preparation of the reported information rarely comes to attention.

– In audit engagements, the accounting and control systems within the company have to be assessed, detailed tests have to be performed of control and substantive processes, and explanations reviewed have to be verified.

In review engagements, only analytical procedures provide such assurances.

– The amount of work that the reviewer performs determines the level of assurance that a review engagement provides. However, everyone relying on the review is not able to properly comprehend that. Usually, material error and fraud are not detected by review engagements like audits tend to do.

This is why an audit is not the same as a review, and a review is not really an ideal alternative.

Is It Worth Investing In An Audit Voluntarily Worthwhile?

It will add to the value of your company if you invest in financial statements audits annually. Unlike larger companies, smaller ones face certain issues that make it even more worthwhile to make such an investment, which include:

– When preparing their own accounts, small companies often need assistance in order to arrive at adjustments like bad debts, obsolete stocks and other provisions.

– Eventually, a statutory audit requirement applies on all companies that grow and if the accounts are not in proper order, the initial years of the audit can be very tiring.

– An audit is necessary in financing buy-out, negotiations and take-over.

– When the auditor is closely involved in the auditing, companies feel more comfortable when facing regulatory and tax investigations.

Just because you are running a smaller company and there will not be any statutory audit requirement, it does not mean that no external “checking” of your books and records will be performed.

The FTA Federal Tax Authority of UAE can ask for the audit report at any time and they have the power and resources that you should not underestimate and they keep on increasing with each passing day.
This means that more investigations are likely to be carried out in the future, and these can be quite thorough.

Does any Public Accountants Board Regulate Audit Fees?

PAB does not regulate audit fees. Generally, the fees charged by auditors depend on how much time they spend on the audit assignment.

The level of experience and skill that the audit requires and the level of complexity and responsibility involved also determine the fees charged.

On the other hand, auditors and clients may come to terms regarding the fees.           

Are There Any Accounting Standards That Must Be Followed?

As long as your company is in UAE, the IFRS International Financial Reporting Standards  will have to be followed.

Regardless of the accounts, auditors have to adhere to a set of accounting standards too.

However, they may not have to adhere to every standard, depending on the nature of your company’s business.

6 Reasons To Hire Us As Your Forensic Accounting Firm

Forensic-Accounting-Firms-in-Dubai-uae

It can be quite challenging when you need to find a good forensic accounting firm in Dubai.

Prior to choosing a firm for the forensic accounting, you must make sure that you have considered some factors.

We are among the leading firms in Dubai and here are some of the reasons why you need to hire us as your preferred forensic accounting firm.

1. We Are Trustworthy

We value our clients and we make sure that they have received the most reliable services required.We aim mostly at making our clients feel comfortable while working with us.

Trust is a very vital aspect that needs to be considered when dealing with any forensic auditing & accounting firm in Dubai,UAE. It is also an aspect that we highly value, since we deal with legal matters at our firm.

A forensic accountant will be hired to carry out deep analysis and scrutiny on financial aspects, which needs fidelity.

We always want the clients to feel comfortable hiring us for the sake of carrying out the necessary services.

We usually take time to explain to the clients bout our company and all the skills that we possess, for the sake of making them trust in us.

2. We Are Experienced

Another important aspect that too many people ignore, yet is very important is the year of experience of a given firm.

A firm must be able to have extensive experience in their field for the sake of being able to carry out their job as required.

We have been in the field of forensic accounting for quite some time now and it is through this that we have earned more knowledge in the field.

Our accountants have a longer certification period, being able to carry out deep job specifications. We are able to handle deep cases relate to forensic accounting.

3. We Have Enough Proficiency

The expertise of a firm is another aspect that you must consider when you are looking for a forensic accounting firm in Dubai,UAE.

Other than the years of experience in the field, the firm must also have enough knowledge about the topic. It is not only about what they have experienced throughout their years of operations.

Also, it is required that the firm must understand what they are doing in the field. Our firm has a deeper know-how in the field, which is a great aspect that contribute to the many cases we
handle.

We are able to take care of several cases that relate to the forensic accounting. For that, we will be able to handle whichever case that is put on the table.

We have a record of all the cases that we have handled, both the successful and the unsuccessful. The successful cases that we have in our records total to about 85%. This is a clear indication of our ability to handle cases with the right skills.

We will always be ready to provide the clients with all our most recent reports. This is only as a
proof that we have handled real cases.

4. We Are Always Available

We are dedicated to serve our clients in the expected manner and always be there in case of any
problems. This is another factor that matters most when you are in search of a forensic accountant.

You must ensure that you find a firm that will always be there whenever you need them. We are not
just physically available, but we also avail ourselves through the phone and the internet.

We have an ever active email account that will be responded by our trained personnel. This will take the shortest time possible when you need your answers urgently.

The phone line is also ever active and for that,we are available to our clients whenever they need us.

5.We Are Affordable

A forensic accounting firm must be fair to the clients, in terms of charging them with reasonable prices. The price quotation of the firm must be within the reach of the average client.

We are considerate of our clients and we ensure that we have provided them with prices that do not care them away.

We only charge fees that relate to our service quality. We are not too high, neither are we too low, but we charge reasonable fees, which match the quality of services that we offer to our clients. This is another aspect that make us a favorite of many people.

6. Informative

We do not just offer the forensic accounting services, rather we also provide our clients with the right information that relate to the field. We will guide them in understanding the forensic accounting perfectly and ensuring that they know what it entails.

Our accountants help to educate the clients on when and why they need forensic accounting. This is an aspect that is vital, since the clients need to understand what it entails and how helpful it is to their organization.

We are basically valuable to our clients and not only in terms of serving them and representing them in court, but also educating them with the right information.

It is vital that the forensic accounting firm to be open enough and loyal to their clients in order to ensure that they get the best services.

We ensure that our clients receive the highest degree of services. In addition, we ensure that they get help whenever they need it, by contacting us whenever they have a problem.

Is It Time For Your Company To Hire a New Auditor in Dubai ?

Looking -for -a-new-auditor-in-Dubai-UAE

Dealing with an audit can be challenging. New businesses can be difficult (and expensive) to discover and maintain. Customer maintenance could possibly depend on the cost of the protection elements themselves, but the administration and information provided by your office. 

Most business owners see the audit as an essential evil, however, most do not see how it works, it is an irrelevant element. Tragically, the use of the “element” simply occurs after a setback, episode or debacle when stress and pressure are high.

Auditors are important professional advisors to nonprofits. Good auditors will help you keep your financial house in order, identify issues that need the attention of board members and management, and assist with any necessary corrective action plans. 

Moreover, a “clean” audit from a respected CPA firm provides a measure of credibility to the organization.

How To Know When To Change Your Auditors ?

There is one school of thought that holds that it is good practice to change auditors every few years, to have the benefit of a new perspective on the organization’s financial operations. Others believe that a long-term audit relationship translates into better understanding of the whole picture and therefore more value to the nonprofit client. 

Regardless of your position on this issue, if you’re not getting good service, you should be looking for a new auditor. But can you recognize when danger signs exist in your relationship? The following list of indicators may help you to identify potential problems.

Not Seeing the Big Picture:

Performing an effective audit means more than obtaining the correct schedules and reports; it includes assessing crucial concerns in the external environment.

If your auditors are unaware of key industry trends, your regulatory environment, and where your organization is heading, then they are unprepared to do the comprehensive job you have a right to expect.

Auditors should be asking themselves and you, “What’s out there that can affect how my client is—or should be—doing business?”

Acting Like a Know-It-All:

Some auditors may not listen to the specifics of an organization’s concerns or apply recommendations that worked for others. That is irresponsible and can cause serious problems.

Providing professional services means that an auditor should “serve” each client with expertise specific to its needs. Displaying general competence and knowledge isn’t enough.

Not Respecting the Organizational Culture:

Auditors should be sensitive to their client’s work environment.

It’s important for auditors to recognize and appreciate the organization’s norms, how staff interact with one another, their preferred method of corresponding and communicating, their workday schedule and their work spaces.

Following the staff’s lead in workplace dynamics shows respect for the organization.

Not Staying in Contact:

Auditors who don’t call you until a week or two before the start of fieldwork are in effect telling you that your organization is not a priority. You should expect a better level of communication.

Auditors should demonstrate to you that they have properly planned, regardless of your size and the size of your audit fees.

They should make themselves available to answer questions about changes in your agency and should make phone contact themselves between audits (if they do not perform an interim audit or review).

This is necessary to identify any changes that could affect the year-end audit. Appropriate communication minimizes surprises—leading to better timeliness and an easier time keeping abreast of the big picture.

Failing to Offer or Recommend Additional Services

An auditor should always consider services and products that can improve controls and business processes.

With the rate of technological and other changes in the environment, if your auditors never or seldom offer this kind of feedback, they may just not be paying attention.

Not Following up on Status of Prior Year Issues:

You should expect the auditor to inquire about the status of prior year Management Letter Comments (MLCs).

Again, auditors must demonstrate to you that your issues are of concern to them. It’s not enough to identify control weaknesses or material misstatements.

It is now fairly standard practice for the auditor to work with management and the board to at least develop a plan to address concerns identified in management letters.

Not Staying Current on Auditing Pronouncements

Auditors cannot perform effective audits if they are not up to date on accounting bulletins and auditing changes. The organization should expect to rely on the auditor for expert level guidance.

Auditors not current on accounting standards are less likely to design and perform audits that minimize the organization’s long-term financial risks.

Politicking Too Much

In general, auditors must use professional skepticism, which means that they should maintain an arm’s length relationship with staff and board. Although the organization pays audit fees, and the auditor has a contractual relationship with the staff or board of the organization, the auditor is ultimately responsible to the organization’s constituents, including funders, for performing a high quality audit.

They should use due care in their judgments. An auditor who frequently dismisses known issues, waives explainable differences, or otherwise is overly lenient, is contributing to a serious breakdown in your accountability mechanisms.

An auditor’s relationship with the staff or board should never compromise his or her duty to the public.

As for the institution itself, the short run gain of appearing to have a clean audit is not worth the long-term risk of having issues blow up and place at risk its funding base and, more importantly, the trust of the community.

Lacking Diversity

Auditors are professional vendors. They provide a service that is, in nonprofits, paid by private and public funds that are received on behalf of constituents.

The audit team, therefore, ought to reflect the diversity of the clients it serves.

Issuing Late Opinions and Recommendations:

Many organizations are guilty of holding up their own audit work by closing the books late or not preparing information as requested. But if the organization has fulfilled its part, it has a right to expect an opinion on its audited or reviewed financials on time.

While the audit time frame may differ based on the size and complexity of the organization, as well as its regulatory and other deadlines, on principle the auditor should get the job done when promised.

Healthy Records, Healthy Company

Performing an audit is crucial to keeping your records clean, healthy, and legitimate. Just as getting an annual check-up keeps you in the best condition to enjoy life, you need to find a partner, whether that’s a doctor or an auditing firm, who can be your ally in achieving those goals. 

The task might seem daunting, but the more thought you put into choosing an auditing firm in Dubai, the better your relationship and audit results will be. A functioning partnership makes the auditing process much easier to manage, so make sure you look for all the right factors when making this decision.

You can use this article as an evaluation tool. Pull it out occasionally and consider the performance of your auditor. Communicate concerns. If they are not willing to make changes, then it might be time to look for another approved audit firm in Dubai,UAE.