Alriyadah Statutory Audit Services in UAE
Why Alriyadah ?
Alriyadah is a UAE based financial consultancy firm offering a wide range of services including auditing, accounting, VAT, tax consulting, software consultancy, and management. We have been providing the best audit services in and around UAE . Our audit team works with you for the well-being of your firm. We adopt up-to-date audit software to analyze and identify any problems, and provide the best solutions.
For any statutory audit services, do contact us – we’d be happy to assist!
A statutory audit is a legal procedure to be done to review the accuracy of an organization’s financial statement and records. It is mandatory to conduct a statutory audit for government organizations to monitor and evaluate their performance.
Generally, the statutory report is prepared for the public. It helps to determine whether the company is providing a fair and accurate financial information to the public. The statutory audit examines information such as bookkeeping records, bank balances, and financial transactions.
Advantages of Statutory Audit
The advantages of conducting a statutory audit for one’s company are:
Statutory Audit Procedure
The statutory audit procedure includes an understanding of the organization’s operating environment and controls. A statutory auditor needs to test internal mechanisms as well as details of accounts. Thus, the statutory audit procedure comprises the following steps:
What Are Statutory Audit Requirements?
A firm needs to have the following documents before getting a statutory audit started:
What is the Difference between Statutory Audit and Internal Audit?
|Statutory Audit||Internal Audit|
|A statutory auditor is appointed by the shareholders of the company||An internal auditor is appointed by the management|
|The audit is conducted after preparing the final accounts||Internal audit is a continuous process|
|Statutory audit is a legal requirement||The scope of an internal audit is limited to the management|
|It is conducted by an external auditor or an audit firm||It is conducted by the employees of the organization or an audit firm|
|A statutory audit report must comply with certain standards||No such rules hold for internal audit|
Is statutory audit compulsory?
As per the Commercial Companies Law, audit is mandatory for all companies. But certain free zones have separate auditing requirements.
Is audit mandatory for branches of foreign companies?
It is mandatory for foreign companies to submit audited financial statements of the branch of foreign companies registered in UAE in every year.
Are there any requirements from any government departments other than the license issuing authority?
Other government authorities such as the Municipality, various Ministerial Departments, Insurance Authorities, etc. also demand companies to submit their audited financial statements as and when required by such authorities.