FAQ
- Is audit mandatory for companies in Ras Al Khaimah?
Yes. Most companies registered in Ras Al Khaimah, including Free Zone and Mainland entities, are required to maintain audited financial statements. The requirement depends on the licensing authority and business activity. Free Zones such as RAKEZ generally require annual audited reports.
- Is audit compulsory for companies in Dubai?
In many cases, yes. Companies operating in Dubai, especially Free Zone entities and LLCs under mainland regulations, are required to prepare audited financial statements. Compliance requirements vary depending on the regulatory authority and business structure.
- What is a statutory audit in the UAE?
A statutory audit is an independent examination of a company’s financial statements to ensure they comply with UAE laws and International Financial Reporting Standards (IFRS). It verifies accuracy, transparency, and regulatory compliance.
- Why is an external audit important for businesses?
An external audit:
- Ensures regulatory compliance
- Enhances credibility with banks and investors
- Identifies financial risks and control weaknesses
- Improves internal financial processes
- Supports VAT and corporate tax compliance
Audited statements are often required for visa renewals, bank facilities, and license renewals.
- How long does an audit take?
The duration depends on:
- Company size
- Transaction volume
- Record quality
- Internal control systems
Typically, audits for SMEs in Ras Al Khaimah or Dubai take between 1 to 4 weeks.
- What documents are required for an audit?
Common documents include:
- Trade license
- Memorandum of Association (MOA)
- Bank statements
- Sales and purchase invoices
- VAT returns (if applicable)
- General ledger and trial balance
- Payroll records
Having organized records significantly reduces audit time.
- Do Free Zone companies require audited financial statements?
Yes, most Free Zone authorities in Ras Al Khaimah and Dubai require annual audited financial statements for license renewal and regulatory compliance. Requirements may vary depending on the Free Zone authority.
- What is the difference between internal audit and external audit?
- Internal Audit: Focuses on evaluating internal controls and operational efficiency.
- External Audit: Conducted by an independent auditor to verify financial statements and ensure legal compliance.
Both are important for strong corporate governance.
- How much does an audit cost in Ras Al Khaimah and Dubai?
Audit fees depend on:
- Business size
- Complexity of transactions
- Industry
- Regulatory requirements
SME audit fees typically start from competitive market rates but vary case by case.
- When should a company start its audit process?
Companies should begin the audit process immediately after financial year-end to avoid delays in license renewals, banking requirements, or compliance deadlines.