How does Audit and Accounting Help Malls and Shopping Centers in the UAE
Prior to the global pandemic, the hospitality industry in the United Arab Emirates was booming. The tourism and travel industries have exploded in recent years. This was achievable since the country’s administration was attempting to move the country’s attention away from oil and hydrocarbons and toward other sectors. To help with this, the government built a variety of tourist attractions throughout the country, including retail sites, tourist attractions, and simple transit.
People consider Dubai to be the best shopping destination in the world. It is home to a variety of enterprises, retail stores, shopping malls, and other establishments. Each of these shops, whether they are self-contained or part of a shopping mall, must complete a Gross Turnover Audit. It’s also known as a sales audit. The government has made it essential for a shop to conduct such an audit. This means that at the end of the financial year, every company must produce an audit report to the appropriate government. The approved auditors will enter the picture at this point.
What is a Sales Audit, and why is it necessary?
All shops located in a shopping centre or a shopping mall must present an audit report for all sales made during the financial year, according to the UAE government. In the United Arab Emirates, this is called an Audit of Sales, and it is an obligatory audit of the stores.
This audit has been deemed necessary by the government for the government to be certain that no unlawful or fraudulent behavior is being carried out by the corporate entity in the long run. This audit will provide a clear picture of overall sales for the financial year to both management and the government. An accurate financial image of the business can be established using the audit report generated after the financial year.
What are the benefits of a sales audit?
An audit of sales will allow every business entity’s management to gain a better understanding of the current business and will also aid in the formulation of future plants. The following are some of the primary advantages of doing a sales audit for a company:
- The audit report generated after the audit process will aid management in identifying all transactions made as well as the control measures to be implemented.
- An audit of sales will allow mall management to determine if the business is following all of the jurisdiction’s rules and regulations.
- When a business decides how much rent to charge, the final predictions and outcomes of the audit report will be taken into account.
Documents to be Maintained
A business must keep track of a variety of documents. During the audit, the competent authorities can also request any other necessary documents in order to better understand the present state of the firm. These documents include the following:
- The relevant trade license
- Bank Statement of the Cash Sales Deposits
- Sales report of all the point of sales on a month by month basis
- Bank Statement depicting revenue or sales figures
Other papers may be requested by the appropriate body to further verify the financial activities. This is why the company should enlist the help of a reputable audit firm to ensure that there are no problems in the future.
Alya Auditors can assist you in this regard if you are looking for such a service for your business in the United Arab Emirates. Alya’s expertise will provide a unique solution to any difficulty the company is facing, as well as assistance in developing a long-term strategy. Please contact us for additional information about the services we give to businesses. We will be happy to help you.
Aishwarya Pramod, thank you so much for the detailed description of accounting and auditing in malls in the UAE.