Audit & Assurance Service in Dubai, UAE

An external audit and an internal audit are two different types of audits. An external audit is conducted by an independent firm to verify the accuracy and compliance of financial statements, whereas an internal audit is an ongoing process within the organization to assess and improve internal processes, risk management, and governance. Also an External Audit is conducted by an External, Independent Audit firm or Certified Public Accountants (CPAs), whereas an Internal Audit is conducted by an internal audit department or team within an organization.

In Dubai, audits can be performed by licensed and qualified professionals. The specific requirements and regulations may vary based on the type of audit being conducted. External audits, which involve the examination of financial statements for compliance and accuracy, are typically conducted by licensed audit firms or certified public accountants (CPAs), whereas Internal audits are conducted by internal audit departments or teams within organizations.

In the UAE, certain types of companies are required by law to conduct a financial audit. The specific requirements may vary based on the legal structure, size, and nature of the business. Like Public Joint Stock companies (PJSCs), Private Joint Stock Companies (PrJSCs), Limited Liability Companies (LLCs) & Free Zone Companies etc are required to conduct a financial audit.

The role of auditing and assurance services is to provide an independent and objective evaluation of an organization's financial statements, processes, controls, and other relevant information. The main objectives and roles of auditing and assurance services are Financial Reporting Verification, Compliance Assessment, Risk Identification and Mitigation, Assurance Services, Enhancing Credibility, Stakeholder Confidence & Corporate Governance etc

An audit is a systematic examination of financial records, transactions, systems, and processes of an organization to ensure accuracy, reliability, and compliance with applicable accounting standards, laws, and regulations. Whereas, Assurance is a broader term that encompasses the examination and evaluation of various aspects of an organization's operations, management, controls, and governance.

In the UAE, the requirement for a company to undergo an audit typically depends on its legal form, size, and activities. In general, Free zone companies in the UAE are often required to undergo an annual audit. Each free zone authority may have its specific rules and requirements regarding audit obligations. While Mainland companies in the UAE may also be subject to audit requirements, especially if they meet certain criteria such as exceeding a specific turnover threshold or having a certain number of employees. The UAE Commercial Companies Law may outline the requirements for mainland companies.