event management audit
EVENT MANAGEMENT AUDIT IN THE UAE
INTRODUCTION
Dubai operates as the world’s largest center for the most opulent events. Some of the most well-known and well-attended events in the world are situated in Dubai. So, an event management audit is also an important matter of fact that we have to consider for an event management company.
Dubai has grown by 25% annually over the last few years. The local events sector is preparing to embrace this trend and is diligent about doing so. This illustrates how Dubai, United Arab Emirates, is among the locations where building an event management company would be quite profitable.
HOW AUDITING CAN BE AN AID IN EVENT MANAGEMENT COMPANIES?
After setting up an event management company it is essential to keep a tab on the business activities, auditing services can be a lot of use.
These services providing reports, not only help track the activities and meet the legal requirements but also help management in further decision making, and so boost the event management company leading the growth of the business, and attracting investors, which in turn increases the goodwill.
A method of assessing how well internal controls are working in a corporation is through auditing. The auditor's responsibility is to offer a qualified assessment of the business's financial situation.
For an event management company to achieve its business goals and avoid fraud and asset misuse, maintaining an effective system of internal controls is essential.
The auditing scenarios are transforming, it’s becoming more stringent, and the regulatory bodies demand greater transparency.
Auditing not only helps ensure that companies present a true picture of financial statements to their users but also helps the company track its performance and support future planning.
Auditing services in UAE are working constructively towards meeting all the agendas required to build a base. It also meets the law of the land, the interest of the company, and other users and prospective users of the financial statements of the company.
LAW GOVERNING AUDITING PROCEDURE IN THE UAE?
The Auditing services in UAE are mandated by law of the land. As per Federal Law No. 32 of 2021 on Commercial Companies (the New Companies Law) that has repealed and replaced Federal Law No. 2 of 2015 on Commercial Companies (the Repealed Companies Law), the following criteria must be met:
- Every corporation must appoint one or more auditors for the annual review of financial statements, which must include a balance sheet and a profit and loss account.
- The company must adhere to international accounting standards and practices while creating its periodic and annual reports to give investors an accurate and understandable picture of profits and losses.
According to the Commercial Companies Law, all mainland-based businesses must maintain their financial records for 5 years and obtain a certified copy of their financial records.
The audited reports shall be submitted to the authorities within a period of 90 days of the company's year-end.
Whereas auditing may not be a mandatory requirement for a Free zone company. It depends on the free zone in which the company is established.
MARKET OF EVENT MANAGEMENT INDUSTRY AND ITS SCOPE OF POTENTIAL GROWTH
The Middle East and Africa's events market is anticipated to increase from US$ 53.63 billion in 2022 to US$ 76.67 billion by 2028, growing at a CAGR of 6.1% between 2021 and 2028.
On the other hand, the size of the global events industry market, which was estimated to be worth USD 886.99 billion in 2020, is expected to increase to USD 2,194.40 billion by 2028, rising at a CAGR of 13.48% between 2021 and 2028.
And with the growing and evolving event market, there is a need for outsourcing and thus businesses require consultants who can use this critical information in the audit process as precisely and successfully as possible.
Meanwhile, hiring service providers will save you time and resources and give you an expert's opinion and tailored solutions for your enterprise.
The professionalism they work with has given higher accuracy, transparency, confidentiality, and orderly workflow.
WHY DO AN EVENT MANAGEMENT AUDIT IMPORTANT IN UAE?
It is important for every company to do an audit every year. Similarly, an event management audit is preparing to analyze the following factors:
- Presents a true and fair picture of the organization
- Detects and prevents fraud
- Helps management in decision making
- Compliance with the law
- Attracts investors
- Expertise and experience
- Saves time and resources
- Verification of internal control
- Reduction in cost
- Increases goodwill
Moreover, an auditor is a team or individual who conducts business auditing. The management can choose any auditor as they please in a company established on the mainland. Likewise, only an approved auditor can conduct an audit in the Freezones.
In UAE, jurisdiction is a matter of concern while considering the audit and assurance process. It is different for different jurisdictions.
A judicious analysis of financial statements to give an impartial opinion helps the event management business see a new perspective.
In short, such companies require auditors that are familiar with their sector, region, political and economic policy issues, long-term strategy, and any risks that need to be evaluated and handled.
