Yes, audit is mandatory for all companies registered in the UAE, regardless of their legal form or nature of their activities. The requirement for audit is established under Federal Law No. 2 of 2015 on Commercial Companies (the “Company Law”), which mandates that all companies must appoint an auditor and prepare audited financial statements each year.
The audited financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS) or other accounting standards approved by the UAE Ministry of Economy. The auditor must be a registered auditor with the UAE Ministry of Economy and comply with the auditing standards set by the UAE Auditing and Accounting Organization (AAO).
It is important to note that some free zones in the UAE have their own regulations regarding auditing, which may differ from the requirements of the Company Law. Therefore, it is advisable to check with the relevant authorities or seek professional advice to ensure compliance with all applicable regulations.
Every company registered under UAE Commercial Company law must amend their Memorandum of Association (MOA) on or before 30th June 2017 to be in line with the provisions of the new UAE Commercial Company law issued in 2015. As per the provisions of the Law, it is mandatory to get the books of accounts audited every year. Hence with effect from 1st July 2017, every company registered under the law should get their accounts audited by a registered auditor.
We provide ProfessionalAudit Services in UAE providing clients with a wide range of quality Audit Services in UAE with accordance to the client’s business needs. Auditors at Alya Al Marzooqi Auditing are committed to provide the best Auditing Services in the UAE to the clients in compliance with the latest updates on IFRS in the UAE having their international experience in Auditing. The Audit Team at Alya Al Marzooqi Auditing are professionally equipped with relevant industry experience from different ends.
Courtesy to Khaleej Times