Registered Audit Firms in RAKEZ
Ras Al Khaimah Economic Zone (RAKEZ), established by the government of Ras Al Khaimah, has made auditing mandatory for companies operating in the RAKEZ from 2020 as per a new announcement from RAKEZ Authority. The companies need to submit a copy of the audited financial statements for the financial year of 2019, and for a subsequent year, within 6 months from the end of the company’s financial year. The companies operating in the RAKEZ need to get their books of accounts audited from the registered audit firms in RAKEZ.
Audit firms that are not registered with RAKEZ are not allowed to conduct the audit or liquidation or provide services to companies licensed by the RAKEZ. The new regulations are 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 Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ is located in the northernmost emirate, Ras al Khaimah, and is one of the largest economic zones in the UAE and it hosts over 14,500 companies. The strategic location in Ras al Khaimah is a huge benefit to the companies as it provides access to the markets of South Africa, Europe, Southern and Central Asia and other Middle East Countries. Ras Al Khaimah’s competitive real-estate prices and the provision of availability of property on leases are a big boon for investors. The emirate also has zero restrictions on currency exchange or on recruiting labour.
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Why Audit Is Mandatory From Approved Auditors In RAKEZ?
The companies registered with RAKEZ need to appoint an 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 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 auditor also needs to state in his report whether the company is undertaking only activities permitted under its trade license. The authorities rely heavily on the auditor’s report before renewing the trade license.
The RAKEZ approved auditor needs to carry out investigations to decide if the company has maintained proper records. The auditor must also ensure that the accounts of the company are in agreement with the accounting records and returns. Failing to submit the audited financial statements would result in a fine of AED 2,500 and may even lead to suspension of services.
The companies operating in RAKEZ can choose the top RAKEZ approved auditing firms based on the reputation and experience of such firms.
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 show a fair view of the profit and loss for the given year.
Auditing Services in RAKEZ
It is of utmost importance to note that the companies need to appoint the auditor from the RAKEZ 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 Ras Al Khaimah Economic Zone (RAKEZ) Authority. The expert team of auditors in JCA analyzes and provides a report on the accounts of the companies operating in RAKEZ. 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 RAKEZ 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