Auditing financial statements is of paramount importance for both management and the company as a whole. Audit data is used to make critical decisions on development plans, licenses, loans, investments, and related matters. When preparing financial statements for investors, government agencies, and other interested parties, it is essential to ensure the company's data is accurate, which is why an external audit is required. Alliance Business Advisors partners offer external audit services for corporate clients in Dubai, Abu Dhabi, Ajman, and other Emirates.
The importance of external auditing
Often, a superficial assessment of individual indicators provides an incomplete and inaccurate picture.
For example, revenue indicators are rising, and at first glance, everything appears fine. But if you dig into the annual reports, you may discover significant hidden expenses that ultimately offset the impact of profit growth.
An external auditor with an outside perspective, such as a professional partner from Alliance Business Advisors, can quickly identify negative trends and hidden growth opportunities and recommend solutions to improve the company's overall efficiency.
In accordance with UAE Federal Law No. 2 of 2015, auditing and accounting are mandatory, so all companies registered in the UAE must conduct annual audits and keep relevant financial records for at least five (5) years. For businesses registered in free economic zones (FEZs), special rules apply.
External auditing is a mandatory requirement of the UAE's local government to standardize financial reporting across economic sectors, reduce macroeconomic risks, and support national priorities. External auditors will help significantly improve the quality and transparency of your reporting.
Alliance Business Advisors partners provide external audit services, which include:
- Collection and analysis of company data;
- Development of customized audit plans;
- Oversight of external audit processes;
- Identification, analysis, and assessment of business risks;
- Verification of completeness and absence of material misstatements;
- Preparation and review of audit reports and recommendations for improvement;
- Assistance with consulting support during the audit process;
- Interaction with company management on audit results.
Audit from Alliance Business Advisors partners
Our partners have in-depth knowledge of local laws and extensive experience in the UAE market, offering high-quality auditing services delivered by certified personnel. By partnering with Alliance Business Advisors, you get:
- Full compliance with UAE regulations;
- Increased confidence and trust in the industry;
- Transparent financial reporting;
- Prevention of fraud and abuse;
- Business updates based on thorough analysis;
- Customized recommendations for addressing operational deficiencies;
- Optimized business processes and greater profitability.
Want to learn more about external audit services in the UAE?
Complete the online form on our website, and our consultants will contact you and answer any questions.
Frequently asked questions
What is an external audit?
An external audit is an independent assessment of a company's financial statements to ensure accuracy, transparency, and compliance with legal requirements. An external auditor in Dubai is always an outside specialist and cannot be part of the audited company's staff. All of our audit partners have the necessary certifications and professional experience to effectively conduct any external audit in Dubai.
Who can conduct an external audit in the UAE?
To conduct an external audit in the UAE, you need a professional audit license, as well as licenses for accounting or tax consulting services. Alliance Business Advisors' partners hold the necessary qualifications and licenses to provide these services. Contact our managers for more details.
External audit services from Alliance Business Advisors' partners include a detailed review of the company's accounting records. They issue their opinion on the reliability and accuracy of the data in the documents. In their work, our partners are guided by accounting standards such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
What does the external audit service package include?
The list of external audit services includes procedures to assess the accuracy and reliability of a business's financial statements and confirm their compliance with applicable standards. If there are any errors, an external audit will help identify and subsequently correct them. An external audit includes:
- Audit of financial statements;
- Audit of compliance with tax legislation;
- Audit of internal controls;
- Audit of compliance with regulations;
- Audit of business processes;
- Special types of audits;
- Consulting on taxation and accounting issues.
What company documents are checked as part of the external audit service in the UAE?
During an external audit of a company, Alliance Business Advisors partners check the following documents.
- Payroll reports;
- Bank account lists;
- Company legal documents;
- Minutes of board meetings;
- Documents confirming the legality of transactions;
- Accounting books;
- Company balance sheet;
- Lease agreements and other significant agreements affecting the company's obligations.
How long does an external audit take?
An external audit usually takes about three (3) months. This includes:
- 4 weeks for audit planning;
- 1 month of research within the company itself;
- 4 weeks to prepare and submit audit reports.
Alliance Business Advisors partners adhere to local regulatory standards and best international practices in their work, ensuring accuracy and integrity. Audits and reports will be completed on time and in compliance with all regulations.
How much will an audit of a small company cost?
The cost of an external audit varies depending on the number of your accounts and financial records. Contact our managers, and they will provide more detailed pricing information and a cost estimate.
Why might an external audit be necessary?
Firstly, external audit services are directly required by UAE law. Secondly, the report prepared by our partners will contain valuable information for management. Based on this data, it will be possible to make more informed decisions and identify and correct existing errors.
Who conducts the external audit?
External audits are always conducted by independent auditors (in this case, our partners). Using sophisticated assessment tools, they analyze financial statements and issue impartial reports containing practical recommendations. The final reports are submitted to regulatory authorities, investors, shareholders, and other interested parties.
What types of audits are there?
As a rule, there are two main types of audits:
- External audit (conducted by a certified auditor who is not a company employee);
- Internal audit (conducted by the company's own specialists).
In addition, a special audit may sometimes be required for a specific task, such as a construction audit.
Is an external audit mandatory in the UAE?
According to UAE Federal Law No. 2 of 2015 (UAE Companies Law), an external audit is mandatory for companies registered in the main territory of the Emirates (outside free zones). Financial statements must be kept for five (5) years. Companies in free zones are subject to their own auditing rules.
