Registered Audit Firms in DAFZA
The companies operating in the Dubai Airport Free Zone are required to get their books of accounts audited from the registered audit firms in Dubai Airport Free Zone. Audit firms that are not registered with the Dubai Airport Free Zone Authority (DAFZA) are not allowed to conduct the audit or liquidation or provide any services to companies licensed by the DAFZA. It is also important to note that the auditing is mandatory for both Free Zone Establishment (FZE) as well as Free Zone Companies (FZCO). This requirement is in place to ensure that the registered companies comply with local and international regulations such as the International Financial Reporting Standards (IFRS), Anti-Money Laundering (AML) & Combating Financing of Terrorism (CFT).
About Dubai Airport Free Zone Authority (DAFZA)
Located across the Dubai International airport, Dubai Airport Free Zone was established by the Government of Dubai in pursuant to law No 2 in 1996. Launched with a vision to accomplish the UAE Government’s strategy for an investment-driven economy, the DAFZA houses around 1600 companies from across the world in various sectors including aviation, engineering, telecommunications, etc. DAFZA plays an important role in contributing to Dubai’s $272 billion worth of foreign trade. DAFZA accounted for 12% of Dubai’s foreign trade in the first 9 months of 2019. The proximity of DAFZA to Dubai International Airport makes it an attractive choice for global investors as over 150 airlines from the airport connects more than 220 destinations across the six continents.
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Why Audit Is Mandatory From Approved Auditors In DAFZA?
The companies registered with DAFZA are required to appoint an approved auditor who will examine and report on the accounts prepared in accordance with local and international regulations. The auditor’s report must state whether the company’s accounts comply with the International Financial Reporting Standards (IFRS) and make sure the companies are not indulging in money laundering.
The report submitted by the registered auditor in DAFZA must ensure that books of accounts are complete and no transection is left unrecorded and the accounts present a true and fair view of the company’s affairs at the end of the financial year and books of accounts are free from material misstatements. The auditor also needs to state in his report that the company has not indulged any other activity except as permitted under its trade license. The authorities rely heavily on the auditor’s report before renewing the trade license.
The DAFZA approved auditor is required to conduct investigations to decide if the company has maintained the proper and complete records as required by the Ministry of Finance and Federal Tax authority(FTA). The auditor must also ensure that the accounts of the company are in agreement with the accounting records and returns and are VAT compliant. The companies operating in DAFZA can choose the top DAFZA approved auditing firms based on the reputation and experience of such firms. DAFZA is a designated Free zone as per FTA.
How Should Companies Prepare & Maintain Accounting Record for Auditing?
The companies need to maintain accounting records including underlying documents that are adequate to explain the transactions. The records are required to disclose the financial position of the company with reasonable accuracy. The accounting records must comply with IFRS and FTA and show a fair view of the profit and loss and financial position for the given year.
Auditing Services in DAFZA
All companies operating in the Dubai Airport Free Zone are required to appoint the auditor from the Dubai Airport Free Zone Authority (DAFZA) Approved list of Auditors. Jitendra Chartered Accountants (JCA) is one of the top-rated auditing and accounting firms in UAE. JCA is registered with the Dubai Airport Free Zone Authority. The qualified Chartered Accountants in JCA analyzes and provides a report on the accounts of both FZE and FZCO companies operating in DAFZ. JCA auditors also provide companies with a true and fair opinion on their financial condition to ensure that the company’s accounts are free from any material misstatements and comply with local as well as international regulations including IFRS, Anti Money Laundering (AML) and Combatting Financing of Terrorism (CFT).
Documents Required by the DAFZA Approved Auditors to Conduct the Audit
In order to conduct the audit and assurance, the auditors ask the companies to furnish the documents corresponding to the relevant year, which facilitates the auditor’s job to draw an opinion on the financial position by analyzing the financial statements at the year end to comply with regulations. The companies are required to present the following documents:
- Bank Statements
- Credit/ debit confirmation for all financial transactions
- Copies of bills and invoices
- Memorandum of Association (MoA)
- Articles of Association (AOA)
- Latest Trade License
- Registration Details for VAT and Excise Tax (If Applicable)
- Books of Accounts