DMCC free zone provides a lot of benefits while registering and running business such as different licenses, stress-free business formation, etc. The DMCC free zone businesses must get their accounts audited by DMCC-approved auditors.
Understanding DMCC Rules & Regulations for Businesses
DMCC has its list of approved auditors to ensure that there are the highest quality auditing services provided & registered under DMCC.
All audit firms have reputed tax accountants who adhere to the best practices & standards with a proven experience of conducting financial audits. Using the services of registered auditors in Dubai. DMCC ensures that all the audited financial statements show accurate financial positions for the member companies.
All DMCC member companies should provide their audited financial statements via a DMCC-approved auditor, which is implemented over the transitional period. DMCC also mandates that the audited financial statements need to be submitted within 90 days after the fiscal year.
Documents Required by DMCC Approved Auditors to Conduct the Financial Audit
To continue with the auditing and assurance process, the auditors can ask the DMCC firms to provide their documents for the relevant time. It is also an auditor’s job to check the financial position, analyze financial statements at the year-end, and comply with the DMCC authority regulations.
Here are the documents required:
- Account Statements from the bank.
- Transaction confirmation slips for all financial transactions.
- Additional copies of all the bills and invoices.
- Statements of deposits from the DMCC portal.
- MOA [Memorandum of Association] & AOA [Articles of Association]
- Copy of the latest trade license.
- Registration details of VAT and excise tax.
These are documents that are required by a DMCC-certified auditor to verify and audit your accounts through the whole process.
Complete Auditing Process for DMCC Free Zone Firms
Coming to the auditing process, specific regulations are being laid out for companies & company officials to work in cooperation with DMCC-approved auditors.
Any false/misleading/deceptive statement is prohibited by the DMCC for the auditing process. All the companies cannot change/omit any information being supplied by the auditors.Here is the process:
Preparing the accounts for audit:
DMCC makes it compulsory that all the directors of the DMCC free zone companies must obtain the preparation of accounts for every financial year. It should comply with the IFRS [International Financial Reporting Standards] and specify the profit/loss made during the given period.
Every firm should provide a copy of the audited documents and the auditor’s report with the registrar within 5 business days of the relevant general meeting along with any additional information requested by the registrar along with a DMCC summary report.
Maintenance of accounts:
All the firms must have account records along with supporting documents that show the transactions with accuracy depicting the financial position of the company at that specific point in time.
Disclose the account information to shareholders:
DMCC makes it compulsory to copy audited financial statements and the auditor report. If not provided, then the stakeholders have the right to file a written request to the company for the audited documents, and the firm must respond to the request within 5 business days.
Appointment of auditors :
The company has to appoint a third-party auditor who can examine and report the accounts in compliance with the DMCC regulations. The company is allowed to appoint an auditor based on its accounts, and at the general meeting. The auditor must be registered and approved by the DMCC.
Auditor’s report to the company:
The auditor’s report of the company should state that the company’s accounts have been audited in compliance with the IFRS. Also, the report must reflect the profit/loss of the company for the financial year. Also, the report must state that the company has been involved in the activities permitted as per its licence or any other compliance issued by the DMCC authority from time to time.
Summing up
Auditing of accounts shows the true position of the company in the market. Also, it helps in forecasting the future growth of the company. All business owners must comply with the DMCC rules and regulations for the complete auditing process. AMAJ is registered auditor listed in the mainland and several free zones.
