When submitting audited financial statements in the UAE, companies must follow specific guidelines and procedures set by the UAE government and various regulatory bodies. Here are the steps typically involved in the submission process:
1.Engage an accredited auditing firm: Companies in the UAE must engage the services of an accredited auditing firm to conduct an audit of their financial statements. The firm must be approved by relevant regulatory bodies in the UAE as well where the company is registered.
2.Conduct the audit: The auditing firm will conduct an audit of the company’s financial records and prepare the audited financial statements in accordance with International Financial Reporting Standards (IFRS) or other relevant accounting standards as per the UAE Laws and Regulations Provided by the Ministry of Economy.
3.Prepare the audit report: Once the audit is completed, the auditing firm will prepare an audit report that includes their opinion on the accuracy and reliability of the financial statements well as a view of the financial status of the company over the period in which the audit was done.
4.Obtain necessary approvals: Companies may need to obtain approval from the board of directors or relevant stake holders before submitting the audit to the authorities. This is to ensure that all the reports are received, reviewed and approved before submitting them to the authorities.
5.Submit the audited financial statements: Companies in the UAE are required to submit their audited financial statements to the relevant authorities, such as the Ministry of Finance, Dubai International Financial Centre (DIFC) , Dubai Multi Commodities Center (DMCC), Jebel Ali Freezone Authority (JAFZA) or any other regulatory body that oversees their industry.
6.Maintain records: Companies should keep copies of their audited financial statements, audit reports, and any other relevant documentation for record-keeping purposes for at least 5 years.
Submitting audited financial statements in the UAE is a crucial compliance requirement that demonstrates transparency and accountability in financial reporting. Companies should ensure that they follow the necessary procedures and guidelines to avoid any penalties or legal repercussions.
In the UAE, audited financial statements must be submitted to the following jurisdictions:
1. Department of Economic Development (DED): Companies registered with the DED in the various emirates such as Dubai, Abu Dhabi, Sharjah, etc. are required to submit their audited financial statements to the DED.
2. Free Zone Authority: Companies established in the various free zones in the UAE, such as Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), Jebel Ali Free Zone (JAFZA), RAKEZ, IFZA, Meydan Freezone, DMCC, KIZAD are required to submit their audited financial statements to the respective free zone authorities.
3. Securities and Commodities Authority (SCA): Listed companies on the UAE stock exchanges such as Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) are required to submit their audited financial statements to SCA.
4. Ministry of Economy: Certain companies in specific industries may be required to submit their audited financial statements to the Ministry of Economy.
It is important to note that the specific requirements for submission of audited financial statements may vary depending on the jurisdiction and type of company. It is recommended to consult with a professional accountant or auditor to ensure compliance with all relevant regulations.
FACTs
Completing audits not only ensures compliance with regulatory requirements, but also provides valuable insight into the financial health of a company. This information can be used to make informed decisions about future strategies and investments.
Furthermore, having a completed audit can enhance the credibility of a company in the eyes of investors, lenders, and other stakeholders. It demonstrates transparency and accountability, which can help build trust and confidence in the organization.
While audits may not always be mandatory however, they are an important tool for ensuring the financial integrity of a company. It is highly suggested that even if the company is not obligated to have an audit conducted each year, that it is still completed. This is to ensure that the stakeholders in the company have a clear view of the company’s financial standing as well as if when there is an Audit inspection by any authority, the company has all its documents in place
Deadline - Audited Financial Statement Submission
