Auditors in Dubai Free Zones

Auditors in Dubai Free Zones

Over the past decade, Dubai has witnessed a boom in businesses. With numerous companies setting up their base in the city, there is a constant demand for auditors.

However, auditing firms are unable to accommodate all companies due to space constraints. To circumvent this issue, free zones were created. These free zones allow auditors to set up their offices without having to face space constraints.

In this blog, we will discuss what auditors are and how you can hire one for your company.

Understanding the Concept of Free Zones in Dubai

Dubai’s free zones are special economic zones designed to attract foreign investment in India, China, and other countries. The zone is a zone of free competition, where companies from outside the zone can set up businesses without any constraints and taxes.

These zones provide investors with a number of benefits, including tax holidays, cheap labor, and easy access to finance. Additionally, the free zone offers companies a conducive environment for trading, thereby increasing their profitability.

One of the responsibilities of an auditor in free zones is to provide auditing services to companies operating in the zone. In this role, auditors ensure that all financial accounts of a company are properly audited and report financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

They provide audit opinions and reviews on the financial statements of companies based on financial statements approved by the company’s board of directors.

What are the different types of auditors available in Free Zone?

Auditing is the process of examining the financial records and reporting of an organization to ensure compliance with accounting standards, auditing standards, and other requirements. Auditing can be performed by a variety of auditors such as financial auditors, internal auditors, tax auditors, compliance auditors, and more.

• Financial auditors are independent individuals who provide objective reviews of financial records for companies. They conduct audit checks on vital financial statements and review the company's books of account for evidence of accounting accuracy and completeness.
• Internal auditors help organizations to improve their business operations by carrying out audit checks and inspections of internal controls. They also check the processes used in financial reporting, accounting, and budgeting.
• Tax auditors verify the accuracy of tax declarations and ensure compliance with applicable laws. They examine tax returns filed by companies and carry out audit checks to ascertain compliance with tax laws and regulations.
• A compliance audit is a subset of an internal audit that focuses on an organization’s ability to comply with external regulations such as Sarbanes Oxley guidelines, ethical standards, or environmental policies. This audit check can focus on how well the organization is governed, managed, and controlled.

Benefits of engaging an auditor in a Free Zone

Auditing is a process of verifying the financial statements of a company and auditing firms are well-versed in it. They are appointed by companies to audit the financials of their companies on behalf of the Securities & Exchange Board of India (SEBI) and financial institutions.

An auditor can help you meet the compliance requirements of the free zone. Besides, an auditor can assist you with understanding and implementing accounting standards and regulations. An auditor will ensure that your financial statements comply with international standards.

One of the benefits of engaging an auditor in a free zone is that it provides an independent review and assessment of your company’s financial performance. This helps companies make smart decisions regarding their finances and improve their financial health and stability.

The process of appointing an auditor in a Free Zone

There are a dozen Free Zones globally, and auditing is a mandatory requirement for the establishment of any financial services in a Free Zone.

• For auditors in a free zone, the process of appointment differs from that of auditing firms in a conventional country.
• In a free zone, auditing firms are mandated to be registered with the relevant Ministry of Economy.
• The requisite qualifications of auditors vary from one zone to another depending on the legal requirements of the country. Thus, it is important for business owners to research and compare the services offered by auditors in the free zone before making their decision.
• Additionally, they should seek professional advice before finalizing the auditing firm. Ultimately, they should choose an auditing firm that is registered with the authority.
• After appointing an auditor, business owners must follow up on progress to ensure an effective audit process.

What are the services offered by auditors?

Auditing services are provided by certified auditors to ensure financial statements are free of errors and compliance with laws and regulations. These auditing firms provide financial advice and guidance, review and assess financial statements for accuracy and completeness, identify areas of risk and recommend controls to minimize them, and provide assurance services for companies in free zones in Dubai.

These services help companies to make informed decisions about their finances, allowing them to make sound business decisions and plan for the future.

Auditing firms offer a wide range of audit services including audits of annual financial statements, internal audits of financial reporting, scrutiny of financial statements, statutory audits, management audits, engagement as an auditor, auditing of accounts in different languages, etc. Their vast experience helps them offer qualitative audit services at affordable prices.

A few firms that offer auditing services include KPMG UAE & Oman LLC, EY UAE & Oman LLC, PwC India Pvt. Ltd., A&O Audit Agencies Inc., PricewaterhouseCoopers (Dubai) LLP & CA as a reference.

Requirements to hire an auditor in a free zone

You need to have a valid license from the free zone authority, a minimum number of years of experience as an auditor, a sound knowledge of auditing standards and practices, professional competence, objectivity, and integrity.

Furthermore, you must be able to adhere to the requirement of confidentiality in your work. These are some of the basic requirements you must meet to become an auditor in a free zone.

How can BRS help you?

For a sustainable business, auditing services are an essential part of the picture. BRS Auditing Services can offer comprehensive audit services to help you check the financial statements of your business and make sure that everything is in order. The auditing services for Dubai free zone company include the audit of accounts, verification of financial records, and audits of internal controls.

In addition to this, our team of experts can offer professional advice and guidance on legal and financial matters related to business activities in the free zone. We’ll assist you in obtaining licenses, visas, and other requisite paperwork for setting up a new venture there.

The audit reports that we produce are comprehensive and provide insight into the financial health of your business. Proactive advice will help you identify risks and take corrective action when needed. This is something that free zone companies can’t afford to ignore.

Let’s Sum Up

Auditing has become an essential part of running a business in today’s world. Given the complexities of modern-day business, it’s vital that companies have an impartial third party to verify and confirm their financial statements. This ensures the financial health of a company and allows stakeholders to make informed decisions. An auditor helps ensure that companies are following accepted accounting practices, that records are accurate and reliable, and that internal controls function as intended. By understanding the different auditing options available in Free Zones, you can make a well-informed decision that is suited to your needs.