Shuraa Tax Blog

Category: Auditing Services

  • What are the Advantages of Internal Audit

    What are the Advantages of Internal Audit

    Running a business in today’s business world is about much more than just making sales or keeping accounts updated. Businesses are expected to be transparent, well-managed, and compliant with the law. This is where the internal audit plays a crucial role. Rather than being just a compliance exercise, internal audit helps organisations understand how well their processes, controls, and risk management systems are actually working.

    UAE regulatory expectations have grown significantly in recent years. With VAT, Corporate Tax, AML requirements, and other compliance rules in place, authorities now expect businesses to maintain proper records and strong internal controls. It doesn’t matter if you operate in the mainland or a free zone, internal audit has become an important tool to stay compliant, avoid penalties, and build credibility with regulators, banks, and investors.

    Strong internal controls are not only important for large corporations. Small and medium-sized businesses, startups, and growing companies in the UAE also enjoy the benefits of internal audits.

    What Exactly Is Internal Audit?

    An internal audit is a regular review of your business’s activities to make sure everything is running the way it should. It isn’t just about the money; it’s about processes. The auditor looks at how you manage risks, how you handle your paperwork, and whether your staff are following the company’s own rules.

    The goal is to answer three questions:

    1. Are we doing things right?
    2. Are we following the law?
    3. Can we do things better or cheaper?

    Internal Audit vs. External Audit

    Internal Audit:

    • Conducted throughout the year or at regular intervals
    • Focuses on internal controls, business processes, and risk areas
    • Helps improve efficiency, strengthen controls, and ensure ongoing compliance
    • Reports are mainly for management and business owners

    External Audit:

    • Usually conducted once a year
    • Focuses mainly on verifying financial statements
    • Required for regulatory or statutory purposes
    • Reports are shared with authorities, banks, or stakeholders

    Who Needs Internal Audit Services in the UAE?

    While almost any business can benefit, it is especially critical for:

    1. Public Joint Stock Companies (PJSCs): UAE-listed companies are legally required to have an internal audit function.
    2. Regulated Industries: Companies overseen by the UAE Central Bank or the Securities and Commodities Authority (SCA) (like banks and insurance firms).
    3. SMEs and Family Businesses: To prevent internal leaks (like fraud or inventory loss) and to prepare for the new UAE Corporate Tax.
    4. Companies in Free Zones: Many free zones (like DIFC or ADGM) have their own strict governance rules that an internal audit helps you meet.
    5. Retailers in Malls: Large malls in Dubai often require audited sales reports to verify lease agreements.

    Key Advantages of Internal Audit in the UAE

    For businesses operating in the UAE’s regulated and competitive environment, an internal audit acts as a support system that improves control, reduces risk, and strengthens overall performance. Here are the key advantages:

    1. Strengthens Corporate Governance

    Internal audit helps management and leadership maintain better oversight of business operations. It ensures roles, responsibilities, and decision-making processes are clearly defined and followed. This improves accountability across departments and supports ethical, well-managed business practices, something regulators and investors in the UAE value highly.

    2. Ensures Compliance with UAE Laws & Regulations

    The UAE regulatory landscape has changed significantly with VAT, Corporate Tax, and AML (Anti-Money Laundering) laws. An internal audit acts as your early warning system. It checks your records throughout the year so that when the government authorities come knocking, you are already fully compliant and don’t have to worry about heavy fines.

    3. Improves Risk Management

    Every business faces risks such as, financial, operational, or compliance-related. Internal audit helps identify these risks early, assess their impact, and suggest ways to manage or reduce them. Instead of reacting to problems later, businesses can take proactive steps to protect themselves.

    4. Enhances Internal Controls & Processes

    Internal audit reviews day-to-day processes to see what’s working and what isn’t. It highlights weak controls, duplicate work, or inefficient systems and recommends improvements. This leads to smoother operations, better use of resources, and stronger internal discipline.

    5. Prevents Fraud & Financial Irregularities

    Unfortunately, internal fraud can happen in any company. Internal audit creates a strong deterrent. When employees know that a regular, independent review is taking place, the likelihood of shady activity drops significantly. If something is wrong, the audit is designed to catch it early.

    6. Supports Business Growth & Scalability

    As businesses grow, their systems and controls must grow with them. Internal audit ensures that financial systems, compliance frameworks, and operational processes are strong enough to support expansion, new branches, or increased transaction volumes without creating risks.

    7 Builds Trust with Stakeholders

    Strong internal audit practices build confidence among investors, banks, regulators, and business partners. It shows that the company is well-managed, transparent, and serious about compliance. This trust can make it easier to secure funding, partnerships, or approvals in the UAE market.

    How Often Should Internal Audits Be Conducted in the UAE?

    There is no fixed rule in the UAE for how often internal audits must be conducted. The frequency mainly depends on the size of the business, its activities, and the level of risk involved.

    For most UAE businesses, an annual internal audit is usually sufficient to review compliance, internal controls, and financial processes. Companies operating in high-risk or highly regulated sectors may need quarterly or half-yearly audits to stay on top of risks and regulations.

    Many businesses also follow a risk-based approach, where high-risk areas are audited more frequently than low-risk ones. In short, internal audits should be done regularly and based on business needs, not just as a one-time exercise.

    Internal Audit in the UAE: Mainland vs Free Zone Companies

    Although mainland and free zone companies in the UAE are regulated by different authorities, both are expected to maintain proper compliance, transparency, and internal controls.

    Internal Audit for Mainland Companies:

    Mainland companies are licensed by the Department of Economic Development (DED) and fall under the UAE Commercial Companies Law.

    • Under Federal Law No. 32 of 2021, almost all mainland LLCs and Joint Stock Companies are required to have their accounts audited annually.
    • With the 9% Corporate Tax now in full swing, the Ministry of Economy and the Federal Tax Authority (FTA) expect mainland companies to have strong internal records.
    • In the mainland, banks and government departments (for visa quotas) often require audited financial statements as proof of a company’s legitimacy and health.

    Internal Audit for Free Zone Companies:

    Free Zones (like IFZA, DMCC, JAFZA, or DIFC) operate like mini jurisdictions with their own specific rules.

    • Some free zones require an audit report to be submitted every year during license renewal, while others only ask for it if your revenue crosses a certain threshold (e.g., AED 1 million to 5 million).
    • Qualifying Free Zone Persons (QFZP): If you want to benefit from the 0% Corporate Tax rate in a Free Zone, you must maintain audited financial statements. Without them, you could lose your tax-exempt status.
    • Even if your specific free zone doesn’t force you to submit an audit today, the best practice is to conduct an annual internal audit to ensure you are meeting Economic Substance Regulations (ESR) and AML requirements.

    Choose the Right Internal Audit Firm in the UAE

    Internal audit is not just about ticking compliance boxes, but it helps improve governance, manage risks better, strengthen internal controls, prevent fraud, and build trust with banks, investors, and authorities. For UAE businesses of all sizes, internal audit brings clarity and control to daily operations.

    However, these benefits of internal audits depend a lot on choosing the right internal audit firm in the UAE – one that understands local regulations and real business needs.

    At Shuraa Tax, we offer end-to-end internal audit support for both mainland and free zone businesses- including internal audit solutions and deep expertise in UAE VAT, Corporate Tax, and regulatory compliance. Get in touch today, and we’ll ensure your business stays compliant, well-controlled, and ready for sustainable growth.

    Commonly Asked Questions

    1. Is internal audit mandatory in the UAE?

    Internal audit is not mandatory for all businesses, but many companies are expected to have strong internal controls, especially those subject to regulatory, tax, or compliance requirements.

    2. What are the main benefits of internal audits for UAE businesses?

    The key benefits of internal audits include better compliance, stronger risk management, improved internal controls, and reduced chances of fraud or errors.

    3. How is internal audit different from external audit?

    Internal audit focuses on improving processes and managing risks within the business, while external audit mainly verifies financial statements for regulatory or statutory purposes.

    4. Are free zone companies required to conduct internal audits?

    Free zone companies are not always required by law, but internal audits help them follow best practices, meet tax obligations, and maintain proper governance.

    5. Do small businesses in the UAE need internal audit services?

    Yes, small businesses and startups can benefit from internal audits, especially if they are registered for VAT, Corporate Tax, or planning to scale.

  • DMCC Audit Deadline 2025

    DMCC Audit Deadline 2025

    The DMCC audit deadline plays an essential role for businesses operating in the Dubai Multi Commodities Centre, ensuring each company maintains transparency and financial accountability. Under DMCC regulations, every licensed entity must submit its annual DMCC audit report prepared by an approved auditor.

    This isn’t just a formality; your audit filing confirms that your books are accurate, your operations are compliant, and your business is in compliance with the authority’s financial standards. As the 2025 deadline approaches, companies should start gathering financial statements, cross-checking documentation, and coordinating with auditors early to avoid unnecessary stress, penalties, or delays. Staying proactive now means running your business with confidence and maintaining a strong standing within one of Dubai’s most respected free zones.

    What is DMCC Dubai, UAE?

    The Dubai Multi Commodities Centre (DMCC) is one of the most popular free zones in the UAE, known for offering a business-friendly environment and easy access to international markets.

    Located in the heart of Dubai at Jumeirah Lakes Towers (JLT), DMCC is home to thousands of companies from small start-ups to global trading giants. It provides a well-structured ecosystem in which businesses can operate smoothly, with clear support services and strong legal frameworks.

    Audit Submission Deadline Extended

    The DMCC audit deadline for the financial year 2024 has now been officially moved to September 30, 2025. Previously, businesses were required to submit their audited financial statements by June 30, 2024.

    However, the new timeline provides companies with more breathing space to organise their records, collaborate with auditors, and ensure that their submissions are fully aligned with DMCC regulations.

    Why Was the Deadline Extended?

    This extension isn’t just a date of change; it reflects DMCC’s understanding of the fundamental challenges businesses face. Preparing for a DMCC audit involves gathering financial data, reviewing accounts, coordinating with auditors, and ensuring compliance with all applicable standards. These tasks can be time-consuming, especially for growing companies.

    By extending the deadline, DMCC aims to: 

    • Support businesses in maintaining accurate and reliable financial reporting
    • Reduce the pressure of rushed submissions
    • Encourage transparency and good governance among member companies

    In other words, the new deadline is meant to make the audit process smoother, more transparent, and more manageable, without compromising quality or compliance.

    Audit Requirements in the DMCC Free Zone

    If your company is registered in the DMCC (Dubai Multi Commodities Centre) Free Zone, conducting an annual audit isn’t just a formality; it’s a mandatory compliance requirement. DMCC has clear regulations that every business must follow, and submitting audited financial statements is among the most important. This audit helps DMCC ensure that companies maintain transparency, follow proper accounting standards, and operate in a responsible and compliant manner.

    Once the audited financial statements are prepared, they must be submitted through the DMCC member portal. The Authority then reviews the audit report and financial statements to verify accuracy and compliance with established standards. If everything meets the required guidelines, DMCC issues a Certificate of Compliance, confirming that the company has successfully met its annual audit obligations.

    Timeline to remember: 
    Companies operating in DMCC must submit their audited financial statements within 180 days from the end of their financial year. (Earlier, it was within 90 days, but updated timelines now allow more flexibility.)

    Documents Required for the DMCC Audit

    To complete the audit smoothly, the appointed auditor will request key financial and legal records. Some commonly required documents include:

    • Trade License and Company Profile
    • Office Lease Agreement or Tenancy Contract
    • Trial balance and general ledger reports
    • Passport copies of shareholders/directors
    • Share Certificates
    • Memorandum & Articles of Association (MoA & AoA)
    • Fixed asset and depreciation schedule
    • VAT registration details (if applicable)
    • Bank statements and bank confirmation letters
    • Customer and supplier listings
    • Management accounts (Balance Sheet & P&L)
    • Invoices, bills, receipt books, and supporting documents
    • Fixed asset and depreciation schedule

    Why is Audit So Important in DMCC?

    Apart from being a regulatory requirement, the audit serves multiple valuable purposes:

    Benefit  Why It Matters 
    Compliance  Ensures the business meets DMCC and UAE financial regulations
    Trade License Renewal  You cannot renew your DMCC license without submitting the audit
    Financial Clarity  Helps business owners clearly understand financial health
    Investor & Bank Confidence  Builds credibility when applying for loans or funding
    Fraud Prevention  Highlights irregularities or weak internal controls
    Corporate Tax Readiness  Helps align with UAE Corporate Tax requirements

    What If a Company Fails to Submit the Audit?

    Not submitting the audit is considered a compliance violation. The most immediate consequence is that DMCC will not renew your trade license, which can eventually lead to penalties, restrictions, or even business suspension.

    That’s why working with a DMCC-approved audit firm is essential; they ensure your accounts are correctly maintained, and your audit is completed on time.

    How to Prepare Your DMCC Audit in the UAE?

    Preparing for your DMCC audit doesn’t have to be stressful. In fact, if you organise your financial records throughout the year, the audit becomes a smooth and straightforward process. Since the DMCC (Dubai Multi Commodities Centre) requires companies registered in the free zone to undergo an annual audit, it’s essential to know what to expect and be prepared.

    Below are some practical steps you can follow to ensure your audit goes off without any last-minute panic:

    Step 1: Keep Your Financial Records Organised

    Your auditor will need access to complete and accurate records. Make sure you maintain:

    • Sales and purchase invoices
    • Expense receipts
    • Bank statements
    • VAT records (if VAT registered)
    • Payroll details

    Simple accounting software (like Zoho, QuickBooks or Xero) can make your life easier.

    Step 2: Reconcile Your Accounts Regularly

    Don’t wait until the audit deadline.
    Ensure your: 

    • Bank accounts match your internal records
    • Petty cash balances are updated
    • Inventory counts are accurate

    Step 3: Understand DMCC Accounting Guidelines

    DMCC requires financial statements prepared in accordance with International Financial Reporting Standards (IFRS). Your accountant should already be aware of this, but if you handle your own books, make sure your statements comply with IFRS rules.

    Step 4: Choose a DMCC-Approved Auditor

    Not every auditor can sign off on your DMCC audit.

    • You must appoint an auditor from the DMCC Approved Auditors List.
    • This ensures that the authority will accept your audit report without complications.

    Step 5: Keep Corporate Documents Updated

    Auditors may request supporting documents like:

    • Trade License copy
    • MoA (Memorandum of Association)
    • Passport copies of shareholders
    • Tenancy / flexi-desk agreement
      Make sure all documents are current and valid.

    Step 6: Prepare an Internal Review Before Audit

    Do a basic internal check with your accountant:

    • Are all expenses justified?
    • Are there any unusual or unclear transactions?
    • Do closing balances tie up correctly?

    Step 7: Know Your Deadline

    DMCC requires companies to submit audited financial statements every year, usually within a specific timeframe after your financial year-end. Missing the DMCC audit deadline may result in fines or delays in license renewal, so plan accordingly.

    Common Mistakes to Avoid During the DMCC Audit Process

    Preparing a DMCC audit doesn’t have to be overwhelming, but many businesses end up facing delays or penalties due to avoidable mistakes. Understanding these common slip-ups can help your company stay compliant and submit its audit smoothly.

    1. Delaying the Audit Process

    One of the most significant issues is waiting until the last moment to start the audit. Auditors need time to review financial records, request clarifications, and prepare the final reports. Starting late often leads to rushed work and potential errors.

    2. Incomplete or Disorganised Financial Records

    The DMCC audit requires well-organised accounts. If invoices, bank statements, ledgers, or reconciliations are incomplete or scattered, the auditor cannot verify your company’s financial position accurately. This leads to time-consuming back-and-forth communication.

    3. Not Reconciling Bank Statements

    Bank statement mismatches are a common red flag. Ensure all transactions recorded in your books match your bank’s statements; any discrepancies must be resolved or explained before the audit begins.

    4. Ignoring DMCC Reporting Standards

    DMCC requires financial statements to be prepared in accordance with International Financial Reporting Standards (IFRS). Using different accounting formats or informal internal spreadsheets can lead to rejection of the audit report.

    5. Choosing Unapproved or Unqualified Auditors

    DMCC only accepts audits performed by DMCC-approved auditors. Hiring an unapproved audit firm wastes time and money because DMCC will not receive the report.

    6. Not Tracking Related Party Transactions

    Transactions such as loans, salaries, or expenses between shareholders or sister companies must be appropriately recorded and supported. Lack of transparency in these areas can delay audit approval.

    7. Neglecting to File the Audit on Time

    Even after completing the audit, some companies forget to upload the report to the DMCC portal before the deadline. Late submissions can result in penalties or restrictions on license renewal.

    Benefits of Submitting Your Audit on Time in the UAE

    Submitting your audit report on time isn’t just about following regulations; it’s about building credibility and creating a strong financial foundation for your business. In the UAE, especially in free zones and mainland jurisdictions where audit compliance is mandatory, timely submission reflects how responsibly your company operates. Here are some key benefits:

    1. Maintains Full Legal Compliance

    Timely audit submission ensures your business aligns with UAE laws and free zone authority requirements. This helps you avoid penalties, warnings, or compliance-related delays while renewing your licenses.

    2. Smooth Trade License Renewal

    Submitting your audited financial statements on time speeds up and simplifies the license renewal process. Authorities often require the audit report before allowing renewal, so having it ready keeps operations running smoothly.

    3. Enhances Business Credibility

    A company that regularly audits its accounts and files records on time is seen as transparent, reliable, and well-managed. This can positively impact your brand reputation with clients, partners, and suppliers.

    4. Builds Stronger Relationships with Banks

    Banks often request audit reports when opening accounts, increasing credit limits, or approving loans. On-time audit submissions help maintain trust and make financial approvals easier and faster.

    5. Facilitates Accurate Financial Planning

    An audit provides a clear and accurate view of your company’s financial health. This helps management make informed decisions related to budgeting, expansion, cost control, and investments.

    6. Avoids Fines and Penalties

    Delays can lead to monetary penalties and administrative complications. Submitting time helps you avoid unnecessary financial loss and stress.

    7. Supports Investor and Stakeholder Confidence

    Investors prefer financially disciplined companies. A timely audit shows that the business is being managed responsibly, which can attract or retain potential investors and partners.

    Stay Ahead of the DMCC Audit Deadline with Shuraa Tax!

    In the end, staying on top of your DMCC audit isn’t just about meeting a requirement; it’s about protecting the credibility and continuity of your business in one of Dubai’s most reputable free zones. With the DMCC audit deadline now extended, companies have a valuable opportunity to organise their financial records, coordinate with auditors, and ensure their submissions fully comply with DMCC regulations.

    Preparing early helps you avoid stress, penalties, and last-minute complications, and more importantly, it keeps your trade license renewal smooth and your business reputation strong.

    If you want professional assistance in handling your DMCC audit, choosing the right, approved auditor makes all the difference. Shuraa Tax supports businesses with accurate audit preparation, compliance guidance, and complete documentation handling, ensuring your audit is submitted correctly and on time.

    Need Help with Your DMCC Audit? Contact Shuraa Tax

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

    Let Shuraa Tax make your DMCC audit process worry-free, smooth, and fully compliant.

  • Difference Between Internal and External Audit in UAE

    Difference Between Internal and External Audit in UAE

    Understanding the difference between internal vs external auditing is essential for UAE businesses aiming to maintain financial transparency, comply with regulations, and strengthen their internal controls. While both audit types focus on evaluating financial data and operations, they serve distinct purposes and are conducted by different entities.

    Whether you’re a startup, SME, or a large corporation, knowing how internal and external audits function and how they impact your business can help you make informed financial decisions and stay compliant with UAE laws. This blog will discuss the key differences, benefits, and when your company might need each.

    What is an Audit?

    An audit is a systematic, structured, and independent examination of an organisation’s books, records, operations, or performance. The primary objective is to determine whether the information presented is accurate, reliable, and compliant with applicable laws, standards, and regulations.

    Audits can be financial, operational, compliance-based, or even technological, depending on what aspect of the organisation is being reviewed.

    Key Elements of an Audit

    The key elements of an audit are as follows:

    • Independence: Auditors must be impartial and not influenced by those involved in day-to-day operations.
    • Evidence-based: Auditors base their opinions on factual evidence (documents, statements, data, etc.).
    • Standards: Audits follow specific frameworks, such as the International Standards on Auditing (ISA), GAAS, or local accounting standards.
    • Opinion: At the end of the audit, a report includes the auditor’s opinion on the accuracy and fairness of the information.

    Types of Audits

    Below are the types of audits in the UAE:

    1. Financial Audit

    • Objective: To verify whether a company’s financial statements (income statement, balance sheet, cash flow, etc.) reflect an accurate and fair view.
    • Conducted by: External auditors or statutory auditors.
    • Result: An audit report may include opinions like Unqualified (Clean), Qualified, Adverse, or Disclaimer.

    2. Internal Audit

    • Objective: To evaluate internal controls, governance processes, and risk management.
    • Conducted by: In-house audit teams or hired professionals.
    • Result: Recommendations for improving internal systems and risk mitigation.

    3. External Audit

    • Objective: To independently assess an organisation’s financial health and reporting.
    • Conducted by: Third-party certified auditors or audit firms.
    • Legally required: Yes, especially for public companies, and often for private companies, based on jurisdiction.

    4. Tax Audit

    • Objective: To ensure accurate tax filing and assess whether tax obligations are met as per law.
    • Conducted by: Tax authorities or registered tax auditors.
    • Trigger: Often mandatory after a certain income threshold or if red flags are detected.

    5. Compliance Audit

    • Objective: To ensure the business complies with external laws, industry-specific regulations, or internal policies.
    • Common in: Healthcare, banking, manufacturing, etc.

    6. Operational Audit

    • Objective: To assess the efficiency and effectiveness of operational procedures.
    • Focuses on: Workflow, productivity, and use of resources.

    7. Information Systems Audit

    • Objective: To evaluate IT systems for security, data integrity, and operational efficiency.
    • Common in: Tech-driven companies, banks, and government agencies.

    What is Internal Audit in the UAE?

    In the UAE, internal audit refers to an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps companies achieve their objectives by bringing a systematic, disciplined approach to evaluating and enhancing the effectiveness of risk management, control, and governance processes.

    Key Benefits of Conducting an Internal Audit in the UAE

    Here are the key benefits of Internal Audit in the UAE, especially for businesses operating in a fast-paced and highly regulated environment:

    1. Regulatory Compliance

    Internal audits ensure that businesses in the UAE comply with local laws such as VAT regulations, Anti-Money Laundering (AML) laws, Economic Substance Regulations (ESR), and the UAE Commercial Companies Law. This helps avoid legal penalties and enhances the company’s credibility with authorities and stakeholders.

    2. Improved Financial Accuracy

    Internal audits examine financial statements and internal controls to detect errors, prevent fraud, and ensure that economic data is accurate and reliable. This is essential for strategic planning, reporting, and investor confidence.

    3. Effective Risk Management

    Internal audits identify potential operational, financial, or strategic risks and assess their impact on the business. Auditors then suggest ways to mitigate these risks, helping companies protect their assets and reputation.

    4. Enhanced Operational Efficiency

    Auditors review internal processes and highlight areas of inefficiency or redundancy. Their recommendations can improve resource allocation, reduce costs, and streamline business operations.

    5. Stronger Internal Controls

    Internal audits assess the strength and effectiveness of a company’s internal control systems. Strengthening these controls helps reduce the chances of fraud, data breaches, or process failures.

    6. Strategic Decision-Making

    With accurate insights into business operations and financials, management can make more informed, data-driven decisions that align with the company’s long-term goals.

    7. Improved Corporate Governance

    Regular internal audits promote transparency, accountability, and ethical conduct within the organisation, building stakeholder trust and supporting sustainable growth.

    Purpose of Internal Audit

    • Assessing internal controls: Ensures systems and procedures are in place to manage risks effectively.
    • Compliance: This check ensures that the organisation follows UAE laws, regulations (such as VAT compliance), and internal policies.
    • Risk management: Identifies and evaluates financial, operational, and strategic risks.
    • Operational efficiency: Reviews whether resources are being used efficiently and effectively.

    Who needs it?

    • Listed companies: These must have internal audit functions under the UAE corporate governance rules.
    • Large private businesses: Especially those with complex operations or seeking to maintain strong internal governance.
    • Free zone and mainland companies: Those subject to sector-specific regulations (finance, healthcare, education, etc.).

    Key Standards Followed

    • International Standards for the Professional Practice of Internal Auditing (IIA)
    • IFRS (for financial audits)
    • UAE Commercial Companies Law

    Who performs the internal audit?

    • In-house internal auditors
    • Third-party auditing firms (many companies outsource to firms for an independent view)

    What is an External Audit in the UAE?

    An external audit is an independent examination of a company’s financial statements and records by a licensed audit firm. The main goal is to ensure that the financial statements are accurate and reliable and comply with applicable laws, such as the UAE Commercial Companies Law and International Financial Reporting Standards (IFRS).

    Key Benefits of Conducting an External Audit in the UAE

    External audits are essential for businesses aiming to maintain transparency, build stakeholder trust, and ensure compliance with financial and regulatory standards in the UAE.

    1. Independent Financial Verification

    An external audit provides an unbiased and independent review of a company’s financial statements. This verification assures stakeholders, such as investors, banks, and regulatory bodies, that the financial records are accurate, transparent, and free from material misstatements.

    2. Regulatory Compliance

    External audits help ensure a business complies with the UAE’s legal and financial reporting standards, including IFRS (International Financial Reporting Standards) and VAT laws. Compliance avoids legal penalties and reinforces the company’s commitment to transparency and accountability.

    3. Enhanced Investor and Stakeholder Confidence

    A clean audit report from an independent auditor boosts the confidence of shareholders, potential investors, and financial institutions. It shows that the company maintains sound financial practices essential for attracting investments or securing loans.

    4. Detection of Fraud and Errors

    While the primary goal is not to detect fraud, external audits can uncover anomalies, irregularities, or weaknesses in financial reporting. This helps organisations address issues early and implement stronger internal controls.

    5. Improved Financial Transparency

    External auditors review and validate all aspects of financial reporting, which increases transparency in how the company manages its finances. This is especially important for publicly traded companies or businesses seeking to grow in the UAE’s competitive market.

    6. Objective Recommendations

    External auditors often provide valuable insights and suggestions for improving financial and operational processes. Their objective perspective can help businesses implement best practices and achieve greater efficiency.

    7. Credibility in the Global Market

    Audited financial statements enhance global credibility for international trade or expansion businesses. It helps build trust with foreign partners, clients, and investors, strengthening the company’s position in the worldwide market.

    Purpose of External Audit

    • Financial accuracy: Verifies the correctness of financial statements.
    • Legal compliance: Ensures the business complies with UAE laws, including VAT and economic substance regulations (ESR).
    • Investor/Stakeholder trust: Builds credibility and transparency with shareholders, banks, and government authorities.
    • Annual license renewal: Many free zones and mainland authorities require audit reports for trade license renewals.

    Who needs an External Audit in the UAE?

    • Mainland companies (as per the UAE Commercial Companies Law)
    • Free zone companies (especially in DMCC, DAFZA, JAFZA, etc.)
    • Financial institutions, insurance companies, and public interest entities (mandatory by regulation)
    • Companies with ESR or UBO filing requirements

    Standards Followed

    • IFRS (International Financial Reporting Standards)
    • UAE Federal Law No. 2 of 2015 (as amended)
    • Auditing standards issued by the UAE Ministry of Economy

    Who Performs the External Audit?

    Only approved audit firms licensed by the UAE Ministry of Economy or registered with specific free zone authorities.

    The auditor must be independent from the company being audited.

    Internal vs External Auditing: Key Differences

    Understanding the difference between internal and external audit is crucial for any business aiming to maintain transparency and compliance. Let’s differentiate between internal audit and external audit based on several key factors:

    Factor Internal Audit External Audit
    Objective To evaluate and improve the effectiveness of internal controls, risk management, and governance processes. To provide an independent opinion on the truth and fairness of the financial statements.
    Conducted By The company’s employees or an internal audit team. Independent third-party auditors or external auditing firms.
    Reporting To Management and the board of directors. Shareholders, investors, and regulatory authorities.
    Frequency Conducted regularly throughout the year. Usually conducted annually.
    Scope It is not mandatory but highly recommended for internal control. Legally required for certain types of organisations.
    Regulatory Requirement It is not mandatory but highly recommended for internal control. Legally required for certain types of organisations.
    Independence Less independent, since they are part of the organisation. Completely independent of the organisation being audited.

    In summary, comparing internal and external audits shows that internal auditing is a continuous process focused on internal improvements. In contrast, external auditing is a formal, regulatory process focused on verifying financial accuracy.

    How to Conduct an Audit Procedure in Dubai

    Auditing in Dubai follows a structured process to ensure accuracy, compliance, and transparency. Here’s a step-by-step breakdown of how a standard audit is carried out:

    1. Developing an Audit Plan

    The process begins with a detailed audit plan that outlines the scope, timeline, objectives, and required resources for the audit.

    2. Establishing Client Relationship

    Building rapport and clear communication with the client is key. This helps auditors understand the client’s business environment and ensures smooth collaboration.

    3. Executing Control Testing

    Auditors assess internal controls to identify potential risks and verify the accuracy of financial records and processes.

    4. Reviewing and Drafting Reports

    Based on the findings, a draft report is prepared, highlighting any discrepancies, non-compliance, or recommendations for improvement.

    5. Issuing the Final Audit Report

    The final audit report is issued after client review and any necessary revisions. It offers a transparent and professional assessment of the organisation’s financial health.

    Internal and External Audit Workflow

    An audit is more than an inspection—it’s a structured process that ensures transparency, accountability, and continuous improvement across operations.

    Strategy Design

    Every audit begins with a strategy session between the auditor and the client. This meeting sets the foundation, defining scope, identifying potential risks, and outlining audit objectives. All necessary documents and data are compiled during this phase to streamline the process.

    Client Engagement and Trust Building

    A solid rapport with the client is essential. The audit team introduces their methodology during the initial phase and outlines key focus areas. This transparency fosters mutual trust and encourages smoother cooperation throughout the audit.

    Operational Snapshot & Data Collection

    Surveys or questionnaires provide a broad operational overview. This step allows auditors to understand the system environment and collect further insights by interacting with personnel in key roles.

    On-Site Evaluation & Sample Testing

    With a plan in place, auditors move into execution, reviewing processes on-site and conducting transaction tests. This hands-on verification ensures the gathered data is accurate and the systems function as intended.

    Insight Compilation & Draft Report

    Findings from the audit are consolidated into a detailed draft report. This includes expert recommendations, observed issues, and opportunities for improvement. The draft is shared with the client for feedback and possible revisions.

    Closure & Follow-Up

    The final report is prepared and submitted after the review. A follow-up phase may be initiated to revisit unresolved concerns or verify action on earlier suggestions. Persistent issues can be included in future audits or reported to governance bodies.

    Internal vs External Auditing in the UAE

    Understanding the difference between internal and external audit is vital for maintaining transparency, enhancing governance, and ensuring compliance in the UAE. While internal audits evaluate risk management, controls, and operational efficiency, external audits independently verify financial accuracy and legal adherence.

    Whether you’re looking to improve internal systems or meet regulatory requirements, differentiating between internal and external audits helps you make smarter financial decisions and build stakeholder trust.

    If you’re unsure when your business needs either or both, Shuraa Tax is here to help. Our experts offer customised advice and audit support to keep your company compliant and efficient.

    Shuraa Tax – Your Trusted Audit Partner in the UAE

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

    Let us simplify internal vs external auditing for your business today.

    FAQs

    Q1. How does an internal audit differ from an external audit?

    An internal audit is conducted by a company’s internal team to evaluate risk management, internal controls, and operational efficiency. An external audit, on the other hand, is performed by an independent auditor to verify the accuracy of financial statements for regulatory and stakeholder purposes.

    Q2. What is the difference between internal and external audit in the UAE?

    In the UAE, internal audits focus more on improving the organisation’s internal processes and risk management. External audits are mandatory for most companies and ensure compliance with UAE commercial laws, particularly for free zone and mainland companies.

    Q3. Which is more important, internal audits vs external audits?

    Both audits serve different purposes. Internal audits help with day-to-day risk mitigation and operational improvements. External audits are legally required to maintain financial transparency and compliance, especially with government authorities in the UAE.

    Q4. Internal audit versus external audit: who conducts them?

    Employees or an in-house audit department usually carry out internal audits. Independent, third-party auditors or licensed audit firms conduct external audits.

    Q5. Is external audit mandatory in the UAE?

    Yes, external audits are mandatory for most businesses in the UAE, particularly those registered in the mainland or free zones. Authorities often require the submission of audited financial statements annually.

    Q6. Do UAE companies need to conduct internal audits?

    While not always mandatory, many UAE companies conduct internal audits to strengthen internal controls, enhance risk management, and ensure compliance with company policies and regulations.

    Q7. How often should internal audits be conducted compared to external audits in the UAE?

    Internal audits can be conducted quarterly or as needed, depending on the organisation’s risk profile. External audits are generally performed annually, as UAE law and regulatory bodies require.

    Q8. Can the same firm handle internal and external audits in the UAE?

    Separating internal and external audit functions is generally recommended to avoid conflicts of interest and ensure independence, especially for external audits.

  • Understanding the Different Types of Audit Reports

    Understanding the Different Types of Audit Reports

    Audit reports are essential documents in the financial world, providing transparency, ensuring accuracy, and enhancing accountability. The types of audit reports vary depending on the auditor’s findings and understanding them is vital for both businesses and their stakeholders.

    This detailed blog will walk you through the 4 types of audit reports, categories of audit reports, and four types of audit opinions, all while shedding light on the significance of audit reports, opinions, and best practices.

    What is an Audit Report?

    An audit report is an official document that reflects an auditor’s assessment of a company’s financial statements. It provides an independent and objective opinion on whether the financial statements present an accurate and fair view of the company’s financial health under established accounting standards and regulations. The auditor’s findings determine the categories of audit reports, which can be favourable or unfavourable.

    Audit reports serve multiple purposes, including informing investors, creditors, regulatory authorities, and other stakeholders about the company’s financial condition. An audit report offers transparency and helps establish credibility, ensuring the company adheres to established accounting principles and legal standards.

    What is an Audit Opinion?

    An audit opinion is the conclusion the auditor draws after conducting the audit. It reflects the auditor’s view on whether the company’s financial statements are free from material misstatements, are in compliance with the applicable accounting standards, and whether they reflect the financial position fairly and accurately.

    The four types of audit opinions are crucial in understanding the auditor’s stance. These opinions—unqualified, qualified, adverse, and disclaimer—help convey the level of accuracy and reliability of the financial statements. Each opinion offers a different insight, from full approval to highlighting significant concerns.

    What is the Purpose of an Audit Report?

    The primary purpose of an audit report is to assure stakeholders, including management, investors, and regulatory authorities, about the reliability and accuracy of a company’s financial statements. These reports ensure financial records align with accounting standards and comply with legal regulations. In essence, audit reports instil trust, boost credibility, and mitigate risks related to financial misstatements or fraud.

    An audit report also plays an essential role in maintaining the integrity of a company, allowing management to identify internal control weaknesses, inefficiencies, or potential risks that need to be addressed. This process strengthens the overall governance of the business.

    5 C’s of Audit Reporting

    In audit reporting, auditors adhere to the 5 C’s of audit reporting, which guide the structure and depth of the findings. These elements are essential for understanding the root causes of any issues and how they can be resolved. The 5 C’s are as follows:

    1. Condition

    The condition refers to the current state of the company’s financial health or internal controls. It outlines any discrepancies or problems the auditor identified during the audit process. The auditor details any deviations from the expected standards or practices.

    2. Cause

    This refers to the reasons behind the identified issues. The cause could be mismanagement, accounting practice errors, inadequate internal controls, or fraud. Identifying the root cause is essential for developing effective solutions to address the issues.

    3. Corrective Action

    Once the issues are identified, the auditor recommends corrective actions. These suggestions include improving financial reporting procedures, strengthening internal controls, or implementing better staff training to avoid future misstatements.

    4. Criteria

    The criteria refer to the standards used to evaluate financial statements, such as Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), or specific regulatory requirements. These criteria set the benchmark for what is considered acceptable.

    5. Consequence

    The consequence outlines the potential repercussions of not addressing the identified issues. Consequences may include financial losses, penalties, or a loss of stakeholder confidence, which could ultimately impact on the company’s reputation and future operations.

    4 Types of Audit Reports

    There are 4 types of audit reports, each offering different conclusions based on the auditor’s findings. These reports are essential in conveying the reliability and accuracy of a company’s financial statements.

    1. Qualified Report or Qualified Opinion

    This type of report indicates that the auditor has identified some limitations or discrepancies in the financial records but believes these issues are not pervasive enough to invalidate the overall accuracy of the statements. A qualified opinion may be issued when there are restrictions in the scope of the audit, such as incomplete financial data or insufficient documentation.

    2. Disclaimer Report or Disclaimer of Opinion

    A disclaimer report occurs when the auditor cannot form an opinion on the financial statements.

    This can happen when there are significant limitations in the audit scope, such as a lack of access to essential records or the company’s refusal to provide necessary documents. In such cases, the auditor cannot determine whether the financial statements are accurate or reliable.

    3. Adverse Audit Report or Adverse Opinion

    An adverse audit report is the most severe type of opinion an auditor can give. It means that the auditor has found substantial errors or misstatements in the financial statements that are not in line with accounting standards. An adverse opinion indicates that the financial statements are misleading and cannot be relied upon by stakeholders.

    4. Unqualified Audit Opinion or Clean Report

    An unqualified audit opinion signifies no material misstatements were found. This opinion means that the financial statements accurately reflect the company’s financial position and are compliant with all relevant accounting standards.

    Read Also: Audit Services in the UAE

    How to Write an Audit Report for a Company

    An effective audit report requires clarity, precision, and a structured approach. When writing an audit report, follow these key steps:

    1. Introduction: The introduction provides an overview of the audit, stating the objectives, scope, and the period under review
    2. Audit Scope: Define the areas that the audit covered, including the departments, financial transactions, and records examined.
    3. Findings: Present the audit findings, detailing any discrepancies, weaknesses, or errors during the review.
    4. Recommendations: Based on the findings, recommend corrective actions to address the issues.
    5. Conclusion: Summarize the auditor’s opinion and offer a final assessment of the company’s financial health.

    A well-written audit report is factual, free of jargon, and provides clear recommendations for improving the company’s financial processes.

    Role of an Auditor During an Audit

    Auditors play a critical role in the financial health of a company. They evaluate the company’s financial records, assess the effectiveness of internal controls, and ensure compliance with accounting standards and regulations. There are two types of auditors:

    1. Internal Auditors: Internal auditors are employed by the company and are responsible for evaluating internal processes and identifying areas for improvement. They focus on risk management, operational efficiency, and ensuring compliance with organisational policies.

    2. External Auditors: External auditors are independent professionals who are hired to conduct an impartial audit of the company’s financial records. They assess the fairness and accuracy of the financial statements and provide an unbiased opinion on the company’s financial health.

    What is the Structure of an Audit Report?

    An audit report typically follows a structured format to ensure clarity and completeness. The typical structure includes:

    1. Title: This identifies the nature of the report.
    2. Addressee: This indicates the intended recipients, such as the board of directors or stakeholders.
    3. Scope: Describes the extent and areas of the audit.
    4. Audit Opinion: The auditor’s final opinion on the financial statements.
    5. Findings and Recommendations: Details any issues found and proposes corrective actions.

    Best Practices for Internal Audit Reporting

    Internal audit reports should be clear, concise, and objective. Best practices include:

    1. Clear and Concise Writing: Use simple language to explain findings.
    2. Evidence-Based Reporting: Ensure all conclusions are backed by solid evidence.
    3. Timeliness: Deliver audit reports promptly to allow for quick corrective action.
    4. Confidentiality: Handle sensitive information with care to protect the company’s privacy.

    Implications of Audit Opinions

    The implications of audit opinions are significant for the company and its stakeholders. For example, an adverse opinion could result in a loss of investor confidence, while a clean report can enhance the company’s credibility. A qualified or disclaimer opinion signals that the financial records might have underlying issues that need immediate attention.

    Understanding Audit Reports: Expert Insights and Support from Shuraa Tax

    In conclusion, understanding the different types of audit reports and opinions is crucial for any business. The 4 types of audit reports—qualified, disclaimer, adverse, and unqualified—provide vital insights into a company’s financial health. Whether you are a business owner, investor, or stakeholder, knowing how to interpret these reports helps you make informed decisions.

    At Shuraa Tax, we provide expert guidance through the audit process, helping businesses ensure compliance and improve their financial transparency. For assistance, contact us at +971508912062 or email us at info@shuraatax.com.

  • Top 15 Audit Firms in Dubai, United Arab Emirates (2026)

    Top 15 Audit Firms in Dubai, United Arab Emirates (2026)

    Dubai has grown into a major hub for businesses from all over the world, from finance and real estate to tech and hospitality. With so many companies operating here, keeping financial records accurate and staying compliant with the law has become more important than ever. This is where audit firms come in – they help businesses make sure their finances are correct, transparent, and trustworthy. 

    In 2026, the rules around finance and reporting in the UAE are more detailed than ever. Companies need to follow federal laws, VAT regulations, and international accounting standards (IFRS), along with rules in special financial zones like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). 

    At Shuraa Tax, we help businesses manage their taxes and compliance smoothly. But we also know that choosing the right audit firm is a big part of staying on top of your financial responsibilities. That’s why in this blog, we’re sharing a list of the best audit firms in Dubai for 2026. 

    Top 15 Audit Firms in Dubai, UAE 

    Dubai is home to some of the world’s leading audit firms, offering a mix of global expertise and local insights. Here’s a closer look at the top audit companies in Dubai for 2026: 

    1. Shuraa Tax 

    Shuraa Tax is a UAE-based taxation and audit services provider that has been recognised among the top audit firms in Dubai for many years. The firm is known for its high reputation and deep local insights. Shuraa Tax is trusted by both local and international businesses for compliance and strategic guidance. 

    Shuraa’s in-depth understanding of federal laws, VAT, corporate tax, and free zone regulations allows them to provide practical, reliable, and tailored solutions for companies of all sizes. 

    Services Offered: 

    • Audit & Assurance: Financial statements audit, compliance reporting, IFRS advisory 
    • Tax Services: VAT registration, corporate tax advisory, and filing support 
    • Advisory Services: Business structuring, financial strategy, and regulatory compliance support 
    • Other Taxation Services: Payroll services, ICV certification, Liquidation report, and Bookkeeping & Accounting 

    Why Choose Shuraa Tax: 

    Shuraa Tax is a preferred choice for businesses seeking a local partner who understands UAE regulations, offers personalised services, and supports companies in achieving full compliance efficiently. They have helped hundreds of businesses establish smooth financial and compliance operations in Dubai. 

    2. Deloitte 

    Deloitte is one of the largest professional services networks in the world, known for its expertise in audit, consulting, tax, and advisory services. Founded over 175 years ago, it has built a reputation for combining global knowledge with local market insights. In Dubai, Deloitte works with a wide range of businesses, from multinational corporations to local enterprises, helping them navigate complex financial regulations. 

    Services Offered: 

    • Audit & Assurance: Ensures financial statements are accurate and compliant. 
    • Consulting: Business strategy, operations improvement, technology, and digital transformation. 
    • Risk Advisory: Internal controls, compliance, cybersecurity, and risk management. 
    • Tax Services: Corporate tax, VAT, transfer pricing, and global tax compliance. 

    Why Choose Deloitte: 

    Deloitte stands out for its strong industry-specific knowledge, innovative solutions, and a large team of professionals in Dubai who understand the UAE regulatory environment, including DIFC, ADGM, federal laws, and VAT compliance. 

    3. PricewaterhouseCoopers (PwC) 

    PwC is a global network of firms delivering audit, assurance, consulting, and tax services. With a presence in over 150 countries, PwC combines international expertise with deep knowledge of local markets. In Dubai, PwC has been helping businesses – both small startups and large corporations – ensure compliance, improve efficiency, and make informed financial decisions. 

    Services Offered: 

    • Audit & Assurance: Financial reporting, compliance audits, and risk assessment. 
    • Tax Services: Corporate tax planning, VAT advisory, and compliance support. 
    • Consulting: Business transformation, operations, strategy, and technology implementation. 
    • Advisory Services: Deals, mergers & acquisitions, and business valuations. 

    Why Choose PwC: 

    PwC is known for its client-focused approach, global best practices, and strong technology-driven auditing solutions. They help companies meet UAE regulations while offering insights to improve business performance. 

    4. KPMG 

    KPMG is a leading audit and professional services firm with a global network operating in more than 145 countries. With decades of experience, KPMG has built a strong presence in the UAE, working with companies of all sizes to manage risk, improve operations, and maintain compliance. 

    Services Offered: 

    • Audit & Assurance: External audits, IFRS reporting, and financial statement verification. 
    • Advisory: Business performance, risk management, and financial advisory. 
    • Tax Services: Corporate tax, VAT compliance, and international tax solutions. 
    • Digital & Technology Services: Data analytics, AI-based auditing, and cybersecurity advisory. 

    Why Choose KPMG: 

    KPMG is trusted for its integrity, quality, and commitment to understanding client needs. In Dubai, they combine international standards with local knowledge, making them ideal for businesses navigating both federal regulations and free zone requirements. 

    5. Ernst & Young (EY) 

    Ernst & Young (EY) is a global leader in assurance, tax, transactions, and advisory services. Their Dubai office supports businesses in the finance, technology, hospitality, and real estate sectors. 

    Services Offered: 

    • Assurance Services: Audit, IFRS reporting, and regulatory compliance. 
    • Tax Services: Corporate tax advisory, VAT, and global tax solutions. 
    • Advisory Services: Strategy, risk management, performance improvement. 
    • Transaction Advisory: Mergers, acquisitions, and business valuations. 

    Why Choose EY: 

    EY is recognised for its forward-thinking approach, leveraging technology in auditing, and helping clients understand the UAE’s evolving regulatory landscape, including DIFC, ADGM, and VAT compliance. 

    6. Grant Thornton 

    Grant Thornton is a globally recognised professional services network offering audit, tax, and advisory services. Their Dubai office focuses on helping growing businesses with compliance and financial strategy. 

    Services Offered: 

    • Audit & Assurance: Statutory audits, IFRS compliance 
    • Advisory Services: Business performance improvement, M&A support 
    • Tax Services: Corporate and indirect tax solutions, VAT advisory 

    Why Choose Grant Thornton: 

    Grant Thornton is appreciated for personalised service, sector expertise, and helping clients navigate UAE regulations efficiently. 

    7. BDO 

    BDO is a leading global network of public accounting firms with a strong presence in Dubai. They specialise in providing personalised audit and advisory services to small and medium-sized businesses as well as larger enterprises. 

    Services Offered: 

    • Audit & Assurance: Financial statements, IFRS compliance, internal audits 
    • Advisory Services: Business strategy, risk management, and corporate finance 
    • Tax Services: VAT, corporate tax, and international taxation solutions 

    Why Choose BDO: 

    BDO is known for a client-centred approach, flexibility, and the ability to combine global standards with deep local knowledge. 

    8. Crowe 

    Crowe is a global accounting and advisory network providing specialised audit and consulting services. In Dubai, they focus on helping mid-sized businesses and multinational clients ensure compliance and optimise operations. 

    Services Offered: 

    • Audit & Assurance: Financial audits, internal control reviews 
    • Advisory Services: Risk management, business transformation 
    • Tax Services: VAT advisory, corporate taxation, and global tax compliance 

    Why Choose Crowe: 

    Crowe is recognised for its innovative auditing techniques, strong client support, and in-depth understanding of UAE business regulations. 

    9. RSM UAE 

    RSM is a global network of independent audit, tax, and consulting firms, renowned for serving middle-market companies. They have experience working across industries, including real estate, retail, technology, and financial services. 

    Services Offered: 

    • Audit & Assurance: Statutory audits, IFRS reporting, and internal controls assessment 
    • Tax Consulting: VAT advisory, corporate tax planning, and cross-border tax solutions 
    • Advisory Services: Business strategy, risk management, mergers & acquisitions, and financial advisory 

    Why Choose RSM: 

    RSM UAE is trusted for delivering high-quality, practical solutions that meet global standards while addressing the unique requirements of the UAE market. 

    10. Moore Stephens UAE 

    Moore Stephens is an international accounting and advisory network with a long-standing reputation for professionalism and reliability. Their Dubai office helps companies of all sizes – from startups to established corporations- ensure compliance with UAE regulations while achieving business growth. They serve sectors such as hospitality, manufacturing, technology, and financial services. 

    Services Offered: 

    • Audit & Assurance: Statutory audits, IFRS reporting, and compliance checks 
    • Tax Services: VAT compliance, corporate tax planning, and advisory 
    • Advisory & Business Consulting: Business process improvement, financial management, risk advisory, and strategic consulting 

    Why Choose Moore Stephens: 

    Moore Stephens is recognised for its personalised approach, practical solutions, and deep understanding of both international standards and UAE-specific regulations. 

    11. Baker Tilly 

    Baker Tilly provides audit, advisory, and accounting services worldwide. In Dubai, they focus on helping businesses comply with UAE regulations and optimise performance. They have extensive experience serving sectors such as real estate, construction, technology, healthcare, and financial services. 

    Services Offered: 

    • Audit & Assurance: Statutory audits, financial statement reviews, and compliance audits 
    • Advisory Services: Business process improvement, corporate governance, risk management, and strategic planning 
    • Tax Services: VAT registration and filing, corporate tax advisory, and regulatory compliance support 

    Why Choose Baker Tilly: 

    Baker Tilly is known for its strong client relationships, practical advice, and ability to provide customised solutions that meet local regulations. 

    12. PKF UAE 

    PKF is an international network of accountancy firms providing auditing, accounting, and advisory services. Their Dubai office specialises in supporting SMEs, startups, and mid-market businesses across multiple industries such as real estate, manufacturing, and services. 

    Services Offered: 

    • Audit & Assurance: Financial statement audits, IFRS compliance, and internal control reviews 
    • Tax Services: VAT advisory, corporate tax support, and regulatory compliance 
    • Advisory Services: Business strategy, financial planning, and risk advisory 

    Why Choose PKF: 

    PKF UAE is recognised for its practical solutions, strong local expertise, and commitment to assisting businesses with the UAE regulatory framework efficiently while maintaining global standards. 

    13. Protiviti Middle East 

    Protiviti is a global consulting and internal audit firm providing specialised audit, risk, and advisory services. Their Dubai office focuses on helping businesses improve governance, risk management, and compliance. Protiviti has experience across sectors, including financial services, technology, energy, and healthcare. 

    Services Offered: 

    • Internal Audit & Risk Management: Assessing internal controls, operational risks, and compliance 
    • Advisory Services: Corporate governance, process improvement, and cybersecurity advisory 
    • Financial & Regulatory Compliance: Ensuring adherence to UAE laws, IFRS, and industry regulations 

    Why Choose Protiviti: 

    Protiviti is valued for its deep risk management expertise, innovative audit approaches, and ability to deliver tailored solutions for complex business environments. They help companies enhance internal processes while ensuring compliance. 

    14. Mazrouei & Co. Chartered Accountants 

    Mazrouei & Co. is a UAE-based audit and accounting firm with extensive experience in serving local and regional businesses. They specialise in financial audits, accounting services, and advisory services for companies operating in Dubai’s mainland and free zones. Their expertise spans sectors like real estate, trading, manufacturing, and professional services. 

    Services Offered: 

    • Audit & Assurance: Statutory audits, IFRS reporting, and internal control assessments 
    • Tax Services: VAT advisory, corporate tax support, and regulatory compliance 
    • Advisory Services: Business structuring, financial planning, and corporate governance 

    Why Choose Mazrouei & Co.: 

    Mazrouei & Co. is recognised for its personalised service, practical solutions, and strong understanding of UAE-specific regulations. They are a trusted partner for businesses seeking reliable auditing and compliance support in Dubai. 

    15. TMF Group UAE 

    TMF Group is a global firm providing accounting, tax, audit, and corporate services. In Dubai, they specialise in helping international and local companies manage compliance, reporting, and corporate governance. TMF Group serves clients in industries such as finance, real estate, manufacturing, and professional services. 

    Services Offered: 

    • Audit & Assurance: Financial statement audits, statutory compliance, and IFRS advisory 
    • Tax Services: VAT, corporate tax, and advisory services for UAE and international regulations 
    • Advisory Services: Business setup support, risk management, and corporate governance 

    Why Choose TMF Group UAE: 

    TMF Group UAE stands out for its global reach combined with strong local expertise. Their structured approach helps companies ensure compliance, streamline operations, and make informed financial decisions. 

    How to Choose the Right Audit Firm in Dubai for your Business? 

    Choosing the best audit firm is one of the most important decisions for your business in Dubai. Here’s a guide to make the selection easier. 

    1. Checklist: What to Evaluate 

    When evaluating audit firms, consider these factors: 

    • Reputation & Track Record: Look for firms with a proven history of reliable audits and satisfied clients. 
    • Fees & Value: Compare fees but also assess the value you’re getting – cheaper isn’t always better. 
    • Technology & Tools: Modern firms use digital audit tools, data analytics, and automated reporting for accuracy and efficiency. 
    • Sector Experience: Ensure the firm has experience in your industry—real estate, tech, retail, or financial services. 
    • Global vs Local Expertise: Global firms bring international standards; local firms offer deep UAE-specific insights. 
    • Audit Philosophy: Some firms focus on compliance only, while others provide advisory insights to improve business performance. 
    • Turnaround Time: Check how quickly they can complete audits and reports, especially if you have deadlines. 

    2. Questions to Ask Potential Audit Firms 

    Before signing on, ask these questions to understand their capabilities and approach: 

    • Have you worked with companies in my industry? 
    • How do you stay up-to-date with UAE regulations, VAT, corporate tax, and IFRS? 
    • What is your audit process and timeline? 
    • How do you handle communication and reporting with clients? 
    • Can you provide references or case studies from similar businesses? 
    • Do you offer advisory services in addition to audits? 

    3. Red Flags to Watch Out For 

    • Lack of Local Knowledge: Firms unfamiliar with UAE regulations may cause compliance risks. 
    • Hidden Fees or Unclear Pricing: Always clarify costs upfront. 
    • Poor Communication: Delays, unclear answers, or unresponsiveness indicate potential issues. 
    • Limited Technology Use: Manual audits may take longer and be prone to errors. 
    • No References or Reviews: A firm without verified client feedback should be approached cautiously. 

    Partner with Shuraa Tax – One of the Best Audit Firms in Dubai 

    As we’ve seen from the list above, Dubai has some of the best audit firms in the world – each with its own strengths. Global firms like Deloitte, PwC, and KPMG bring years of international experience and strong systems, while local experts like Shuraa Tax stand out for their personal approach and deep understanding of UAE laws and business practices. 

    When choosing an audit partner in Dubai, think about what your business really needs. The right firm will not just help you stay compliant, it will also guide you in improving your financial health, managing risks, and planning smarter for the future. 

    If you’re looking for a reliable partner who knows Dubai inside and out, Shuraa Tax is a name you can trust. We’ve been among the top audit firms in Dubai for many years, known for our honesty, accuracy, and expert local insights. 

    At Shuraa Tax, we offer complete financial and tax support, including: 

    Reach out to Shuraa Tax today for all your taxation and compliance needs in the UAE. 

    📞 Call: +(971) 44081900
    💬 WhatsApp: +(971) 508912062
    📧 Email: info@shuraatax.com

    Frequently Asked Questions 

    1. Why do companies need auditors in Dubai? 

    Auditors play a key role in keeping your business financially sound and compliant. Here’s how they help: 

    • Ensure financial statements are accurate and transparent 
    • Verify compliance with UAE accounting and tax laws 
    • Identify financial risks and irregularities 
    • Strengthen internal controls and financial management 
    • Build trust with investors, banks, and stakeholders 
    • Support long-term business growth and decision-making 

    2. How to choose the right audit firm in Dubai? 

    Consider reputation, industry experience, UAE regulatory knowledge, services offered, fees, technology use, and communication. Firms like Shuraa Tax combine local expertise with a full range of audit and taxation services. 

    3. What services do audit firms in Dubai typically provide? 

    Most firms offer audit & assurance, tax services (VAT, corporate tax), and advisory services like risk management, business strategy, and regulatory compliance. 

    4. What is the difference between a local and an international audit firm? 

    International firms bring global expertise, standards, and credibility, while local firms have in-depth knowledge of UAE regulations, free zones, and industry-specific compliance needs. 

    5. How often should businesses in Dubai get audited? 

    Most companies are required to have an annual statutory audit, though certain sectors may need quarterly reviews, internal audits, or specific regulatory checks depending on their license and free zone requirements. 

    6. How much does hiring an audit firm in Dubai cost? 

    Costs vary based on company size, complexity, and services required. While global firms may charge higher fees, local firms like Shuraa Tax offer competitive pricing with personalised service and deep UAE expertise. 

  • Tax Audit in UAE: How to Be Prepared for the Audit

    Tax Audit in UAE: How to Be Prepared for the Audit

    Facing a tax audit in the UAE? While it might sound daunting, it’s crucial to remember – preparation is key! Think of it like a friendly financial checkup to ensure your business aligns with the ever-evolving tax regulations of the UAE. Recently, the introduction of Corporate Tax has added a new layer to the compliance landscape, making it even more important to be proactive.

    A tax audit in UAE is conducted by the Federal Tax Authority (FTA) to determine if taxpayers have accurately reported their income and paid the correct amount of taxes.

    The FTA aims to prevent tax evasion and promote voluntary compliance, which ultimately contributes to the growth and development of the country.

    At Shuraa tax, we help ensure that you are fully compliant and prepared for any potential audit. Here we will provide you with valuable insights and practical tips on how to be prepared for a tax audit in the UAE. We will explain everything about Tax or VAT audit in the UAE, audit process, and provide advice on how to maintain accurate records and documentation.

    But first let’s understand – What exactly in Tax audit.

    What is Tax Audit in UAE?

    A tax audit in the UAE, often referred to as a VAT audit, is a process conducted by the Federal Tax Authority (FTA) to verify a company’s compliance with tax laws and regulations. This typically involves examining business records and financial statements to ensure accurate VAT reporting and payment.

    In recent years, the UAE tax landscape has undergone significant changes with the introduction of Value Added Tax (VAT) in 2018. This has increased the importance of tax audits as businesses and individuals need to adapt to the new tax regime and ensure their compliance with the law.

    Purpose of Tax Audit

    The main purpose of a tax audit is to:

    1. Verify compliance

    Ensure companies are correctly calculating and paying their taxes, including VAT and Corporate Tax (if applicable).

    2. Identify errors

    Detect any errors or discrepancies in tax reporting that could lead to underpayment of taxes.

    3. Maintain fairness

    Ensure a level playing field for all businesses by making sure everyone complies with the tax laws.

    4. Overall tax liability

    The audit aims to determine the correct amount of tax a company should be paying and identify any potential discrepancies.

    Who Can Expect a Tax Audit?

    While the FTA can select any company for an audit at any time, certain characteristics increase the likelihood of being chosen. Here’s who can expect a higher chance of facing a tax audit in the UAE:

    1. VAT registration

    All businesses registered for VAT are subject to potential VAT audit in the UAE.

    2. Corporate Tax

    Companies exceeding AED 50 million in revenue in a relevant tax period must undergo mandatory audits.

    3. Repeated inaccurate tax filings

    Consistent errors in calculations or reporting raise red flags for the FTA.

    4. Non-compliance with regulations

    Ignoring specific tax rules or deadlines increases the risk of an audit.

    5. Irregularities in financial reporting

    Suspicious inconsistencies or unexplained discrepancies in financial records attract scrutiny.

    6. Companies in high-risk industries

    Sectors with a history of tax evasion or complex transactions might be subject to more frequent audits.

    7. Companies with complex business structures

    Holding companies, subsidiaries, and intricate international operations involve higher scrutiny due to potential complexities in tax obligations.

    How to be Prepared for Tax Audit?

    Being prepared for a tax audit in the UAE is crucial, regardless of whether your company falls into a high-risk category or not. Here are some key steps you can take:

    1. Maintain accurate and complete records

    Keep all financial records, including invoices, receipts, bank statements, and accounting ledgers, organized and readily accessible. Maintain copies of all tax returns, payments, and correspondence with the FTA.

    2. Understand the relevant tax laws and regulations

    Familiarize yourself with the specific VAT or Corporate Tax (if applicable) laws and regulations that apply to your business. Stay updated on any changes or amendments to these laws.

    3. File your tax returns accurately and on time

    Double-check all calculations and information before submitting your tax returns. Meet all deadlines for filing and avoid any late penalties. Maintain copies of submitted returns for your records.

    4. Review of VAT Returns

    Businesses registered for VAT in Dubai must submit their returns electronically through the official FTA portal. This crucial process involves detailing sales, purchases, and calculated VAT amounts (both output and input) within designated fields of the online form.

    To achieve meticulous and timely filing, consider partnering with Dubai’s leading VAT consultants like Shuraa Tax for comprehensive tax audit services in Dubai.

    What are the Records to Be Maintained for A Tax Audit?

    The specific records you need to maintain for a tax or VAT audit in the UAE depend on several factors, including whether you’re registered for VAT, subject to Corporate Tax, and the type of audit you’re facing.

    • Invoices and receipts
    • Bank statements for the relevant period, both personal and business accounts
    • Accounting ledgers
    • Cash registers and POS records, including daily summaries and receipts
    • Inventory records
    • Copies of all filed tax returns, including VAT returns and Corporate Tax returns
    • Records of all tax payments made to the FTA
    • Copies of all communication exchanged with the FTA, including audit notices, inquiries, and responses
    • Supporting documents for expenses
    • Details of Goods imported
    • Contracts and agreements related to your business activities
    • Asset registers
    • Salary slips and payroll records
    • Specific Industry Requirements

    This is not an exhaustive list, and the specific requirements might vary depending on your situation. It’s highly recommended to consult with a qualified auditor or tax consultant in Dubai who can advise you on the specific records you need to maintain based on your unique circumstances and ensure you comply with all FTA regulations.

    Tax Audit Procedure in the UAE

    1. Notifications

    The FTA usually informs the company about the audit at least five days before the scheduled date. This notification includes details like the audit schedule, location, involved parties, and reason for the audit (if any).

    2. Opening Meeting

    The auditor(s) and the company representatives meet at the designated location and time. The auditor explains the audit scope, timeline, and required documents.

    3. Information Gathering

    The auditor examines various documents, including:

    • Financial statements
    • Tax returns
    • Invoices and receipts
    • Bank statements
    • Supporting documentation for claimed expenses and deductions

    The auditor may also:

    • Interview key personnel
    • Inspect assets on-site
    • Request additional information or documents

    4. On-site Audit

    The FTA auditor(s) will visit the company’s premises or a mutually agreed location. They may:

    • Review records and documents
    • Interview employees
    • Inspect assets
    • Request additional information

    5. Post-Audit

    The auditors will prepare a draft report outlining their findings and any potential adjustments to the company’s tax liabilities. The FTA will issue a final report with their conclusions and any adjustments to tax liabilities. If you disagree with the findings, you can appeal the report to the FTA.

    Penalties for Non-compliance

    The FTA in the UAE imposes various penalties for VAT and Tax non-compliance identified during an audit. These penalties aim to encourage accurate reporting and discourage intentional tax evasion.

    Late filing of VAT return: AED 1,000 for first offense, AED 2,000 for repeat offenses within 24 months.

    Incorrectly filed VAT return: AED 3,000 for first offense, AED 5,000 for repeat offenses.

    Underpayment of tax:

    • 2% penalty on unpaid tax amount due immediately after the deadline.
    • 4% penalty on unpaid tax amount due on the seventh day following the deadline.
    • 1% daily penalty on remaining unpaid tax starting one month after the deadline, capped at 300%.

    Failing to register for VAT when required: AED 20,000.

    Failing to pay tax on behalf of another person: 2% penalty on unpaid tax amount due immediately, followed by 4% monthly penalty and capped at 300%.

    Failing to comply with FTA requests: Up to AED 20,000 per offense.

    These are just some of the main penalties, and the specific amount may vary depending on the nature and severity of the non-compliance.

    Know more about: VAT Penalties in the UAE and how to avoid it

    It’s crucial to consult with a qualified tax professional for accurate and personalized advice.

    Do’s and Don’ts for a UAE Tax Audit

    • Maintain accurate and organized financial records, tax documents, and supporting documentation for at least 5 years.
    • Consider digitizing records for easier retrieval and accessibility during an audit.
    • Understand and correctly apply different VAT rates (5%, 0%, exempt) for various transactions.
    • Double-check all calculations for input and output VAT, ensuring accuracy.
    • Ensure all exempt and zero-rated transactions are properly recorded and reported.
    • Claim input VAT only for eligible expenses and have supporting documentation.
    • Register for VAT if your taxable supplies exceed AED 375,000 annually.
    • Notify the FTA promptly of any changes in your business activities or tax status.
    • Stay updated on the latest VAT and Corporate Tax regulations, especially changes or amendments.
    • Consider consulting a qualified tax consultant or auditor, especially for complex situations.

    Read more: Stock Audit Services in Dubai

    Secure Your Tax Future with Shuraa

    Being prepared for a tax audit in the UAE is crucial for individuals and businesses. It is essential to have all necessary documents and records organized and readily available. However, taxation in the UAE, especially with recent changes, can be complex.

    Seeking tax consultation and advice from a reputable consultant, such as Shuraa Tax, can be extremely beneficial in ensuring compliance with tax regulations and optimizing tax strategies.

    Our team of specialists offers comprehensive VAT, tax management, tax audit service, accounting services, and more across Dubai and other Emirates. We go beyond just compliance, providing insights and strategies to optimize your tax position and ensure long-term financial health.

    Don’t wait for an audit to seek guidance. Contact Shuraa Tax today at +971508912062. You can also drop us an email at info@shuraatax.com. Remember, peace of mind in tax matters is invaluable. Let us help you achieve it.