Audit Firms in JAFZA
The Jebel Ali Free Zone Authority ( JAFZA) has stipulated that the companies registered in the Free Zone should have their annual audit reports submitted to the Authority so that their licenses can be renewed every year without any regulatory trouble. Abiding by the requirement of compulsory annual audit would help companies avert the occurrences of any financial anomalies. As per the regulations, the companies are required to appoint an independent auditor who is registered with the JAFZA. However, the stringent regulations mandate that the companies cannot have their books of accounts audited from auditors who are not in the JAFZA approved auditors list.
About Jebel Ali Free Zone Authority (JAFZA)
The Jebel Ali Free Zone has been established in 1985 to promote trade and to strengthen container throughput at the Jebel Ali Port. The Jebel Ali Free Zone has grown over the years to be one of the largest free zones globally and the region’s most efficient logistics hub. The free zone is currently home to more than 7,500 companies that includes around 100 Global Fortune 500 enterprises. Located in Dubai, between Jebel Ali Port, and Al Maktoum International Airport, JAFZA provides businesses with the best connectivity. The key business activities in JAFZA are spread across various sectors like
- Automotive & Spare Parts
- Food & Agricultural Commodities
- Retail & E-commerce
Send an Enquiry
Why Audit Is Mandatory From Approved Auditors In JAFZA?
The companies registered with JAFZA are required to appoint an auditor who will examine and report on the accounts prepared in accordance with local and international regulations. The auditors’ report state that whether in their opinion the accounts have been properly prepared in accordance with these regulations and in particular whether a true and fair view of the company’s financial statement is delivered.
The auditor’s report must provide details on whether the accounts present a true and fair view of the company’s affairs at the end of the financial year and accounts are free from material misstatements. The companies operating in JAFZA are not permitted to do business on any other activities that are not defined as per the trade license. If the auditor finds that a company is undertaking any such activities, it should be stated in the report.
The auditors, while preparing their report, are required to investigate and form an opinion on whether
- Whether the company has kept proper accounting records
- Whether the company’s accounts are in agreement with the accounting records and returns and are VAT compliant
However, if the auditors are of the opinion that the companies have not kept proper accounting records or if the company’s accounts are not in agreement with the accounting records and returns, then the auditors must state it in their report. An auditor’s report is of utmost importance to the authorities as they depend heavily upon it regarding the financial position of the companies. The companies operating in JAFZA can choose the best JAFZA approved auditing firms in Dubai, UAE based on the reputation and experience of such firms.
How Should Companies Prepare & Maintain Accounting Record for Auditing?
The audit report must state the auditor’s opinion whether the financial statement reflect an honest and true description of the company’s financial position. The auditor is required to evaluate the company’s financial practices to ensure that the accounts meet Implementing Regulations. The auditor is also required to submit a signed copy of the report the JAFZA along with the annual business accounts report.
Auditing Services in JAFZA
Jitendra Chartered Accountants (JCA) is a highly regarded audit firm in Dubai, UAE. Being a registered auditing firm with the Jebel Ali Free Zone Authority, JCA’s highly qualified team of auditors will help companies ensure that their financial statements are true and accurate. JCA’s services will ensure that the company’s audit report reflect an honest opinion on the financial health of the company thereby making the licence renewal process with the JAFZA easier.
Documents Required by the JAFZA Approved Auditors to Conduct the Audit
The companies operating in JAFZA are required to present the documents that correspond to the relevant years during the time of annual auditing. The submission of necessary documents ensures that the auditor could provide an accurate opinion on the financial health of the company after evaluating the financial statements. The companies licensed by JAFZA are required to present the following documents during auditing:
- 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