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An external audit is an independent check of your financial statements by a registered auditor, ending in a signed opinion. This page covers how the work runs and how to hire a firm. Whether your company must have one is a separate question, answered on audit requirements. The short version: Qualifying Free Zone Persons and taxable persons above AED 50,000,000 revenue need audited statements.
Source: Federal Tax Authority, Ministry of Finance Ministerial Decision No. 84 on audited financial statements, checked .
Audit or review
Audited statements carry an opinion from a registered auditor, who tests the records first. A review gives less assurance and does not meet a rule that says "audited". Ask your authority or tax adviser in writing which one they accept before you buy either.
How the engagement runs
- You appoint the firm and agree scope, fee and timetable.
- The firm plans the work and sends a document request.
- You hand over the ledger, bank statements, contracts and supporting papers.
- The auditor tests the records and raises questions.
- You answer, correct any errors and sign a representation letter.
- The firm issues the report together with the statements.
Weak books slow every step. Good bookkeeping through the year is the cheapest way to shorten an audit. Internal checks are a separate service: see internal audit services.
Who can sign
In a free zone, the zone may name the auditors it accepts. DMCC and RAKEZ require approved auditors, and IFZA accepts any registered UAE auditor. Many other zones publish nothing we could verify. Start at free zone approved auditors, or read audit for free zone licence renewal if renewal is why you need the report.
On the mainland, a search extract of the Commercial Companies Law says the auditor must be registered with the Ministry of Economy and licensed by the competent authority, and that the Ministry keeps registers of practising auditors and audit firms. We could not open the full text, so look up the firm on the current register before you sign.
Source: UAE Legislation portal and Ministry of Economy auditor register page (both search extracts), checked .
Picking the firm
Check four things before you sign. The firm and the signing partner should be registered and licensed for the work you need. Your zone or authority should accept them. The fee should be fixed for a stated scope, with a clear charge for extra work. And the firm should give you a timetable with dates. Ask every firm the same questions so the quotes compare. For price points, see audit cost. If you would rather meet the team in person, audit firms in Business Bay lists those with an office there.
Getting your side ready
Close the books before the auditor arrives. Reconcile every bank account. Have the fixed asset list, loan statements, contracts, payroll summary and tax filings ready. Missing items turn into questions, and questions turn into days. Give one person on your side the job of answering the auditor.
When the auditor finds an error
Small errors are usually corrected in the books before the report is issued. Larger ones may change the opinion or delay the report. Ask the firm at the start how it handles adjustments and who pays for the extra time. If the report feeds a tax filing, tell the auditor the filing date up front so both timetables line up.
What you receive
You get the audit report with the signed financial statements. The report states the auditor's opinion and the basis for it. Some firms also send a short letter listing weaknesses they saw in your controls. That letter is worth reading even if the opinion is clean, because it tells you what to fix before next year. Ask the firm up front whether the letter is part of the fee, and who in your company should act on it.
Timing
Ask for the audit start date, the date the document request is due back, and the date the draft report reaches you. A firm that cannot give dates before you sign will probably not give them later either. If a free zone renewal or a tax filing depends on the report, work backwards from that date and leave room for questions.
