Q. Is auditing for businesses in the UAE mandatory?

Answer 1

For some types of organizations in the free zone such as Free Zone Companies (FZCO) and Free Zone Establishments (FZE), account auditing is compulsory; in a branch of local and foreign company audit report may not be required in most free zones. It is clear that the accounting records and documentation must be available and well documented to finalize the audit. In UAE the general rule for businesses is to keep their records for at least five years. The Commercial Businesses Law states that account auditing is required for all companies in the mainland. In the light of the forthcoming VAT in 2018, the maintenance of accounting records will become more relevant for almost all types of organizations in UAE. Companies generally have a period of 3 to 6 months after their financial year is closed to complete the audit report and send it to the general assembly.