Audit and Assurance FAQ

INTERNAL AUDIT

Who Appoints an Internal Auditor in the UAE?

In the UAE, the appointment of an internal auditor is typically the responsibility of the company’s Board of Directors or the Audit Committee.

What are the key areas that an internal audit focuses on?

Internal audits generally focus on risk management, internal controls, compliance with policies, operational efficiency, and overall governance

How does Internal Audit adapt to changes in regulatory requirements or business environment?

Internal Audit adapts to changes by continuously monitoring regulatory updates and industry trends. We update our audit plans and methodologies to reflect new requirements and emerging risks. Our team participates in professional networks and training to stay informed and ensure that our audit practices remain relevant and effective.

STATUTORY AUDIT

Who is required to undergo a statutory audit in the UAE?

Companies, especially publicly listed ones and those regulated by authorities like the UAE Central Bank, are required to undergo statutory audits.

What documents are needed for a statutory audit?

Key documents include financial statements, accounting records, tax returns, contracts, and other relevant financial documentation

How long does a statutory audit take?

• The duration of a statutory audit can vary but typically ranges from a few weeks to a few months, depending on the size and complexity of the organization.

What is the purpose of the statutory audit report?

The statutory audit report provides an opinion on the accuracy and fairness of the financial statements, ensuring compliance with accounting standards and regulations.

What should we expect during the audit process?

Expect an examination of financial records, interviews with key personnel, and verification of compliance with accounting standards and regulations.

What happens if issues are found during the statutory audit?

Issues are documented in the audit report, and management is required to address them and implement corrective measures.

How does a statutory audit impact our financial reporting?

A statutory audit ensures that financial statements are accurate and comply with regulations, enhancing credibility with stakeholders and regulatory bodies

TAX AUDIT

What documents are required for a tax audit?

Required documents typically include tax returns, financial statements, invoices, receipts, and other supporting documentation related to tax filings.

What is the role of the Federal Tax Authority (FTA) in a tax audit?

The FTA oversees and conducts tax audits to ensure compliance with tax regulations and accurate reporting of taxes

How should we prepare for a tax audit?

Prepare by organizing and reviewing all relevant financial and tax documents, ensuring accuracy in tax returns, and addressing any previous issues identified by tax authorities

What can we expect during a tax audit?

During a tax audit, you can expect an in-depth review of your financial records, tax filings, and supporting documents, as well as potential interviews with key personnel.

What are the consequences of issues found during a tax audit?

Findings may result in additional tax assessments, penalties, or interest charges if discrepancies or non-compliance are identified.

How does a tax audit affect our business operations?

A tax audit may lead to increased scrutiny of financial practices and can impact cash flow or financial planning, but it also ensures compliance with tax regulations and minimizes the risk of future issues.

Have Any Question?

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