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Audit: No longer an option, but a statutory requirement in the UAE
The disruption caused by COVID-19 required businesses to adapt & transform their approach at the speed of lightning. This involved
employing a robust system of internal controls and leveraging accurate nancial results to take informed decisions. The need to
navigate challenges while being resilient reinforced the requirement for conducting robust audits.
UAE introduced stringent auditory procedures that companies are required to adhere to.

• Federal Law no. 32 of 2021, Article 27 requires every Joint Stock Company and Limited Liability Company to have their nancial
accounts audited annually

• UAE Free Zone laws require FZLLC, FZE and FZCO entities to get their accounts audited, mandatorily. Entities must present a copy
of their annual nancial statements along with an auditor report aligned to the requirement of the Free Zone Authority where the
Entity is established.

• Dubai Development Authority - FZLLCs and branch o ces (“Company”) are required to prepare and submit their Audited Financial
Statement and Annual Return every nancial year. It is important for companies to submit their most recent Audited Financial
Statement by or before 30th November 2022, after which they must submit their Audited Financial Statements within six months
from the nancial year end.

Timely and e ective audit is a key contributor to minimising the risk of fraud, increasing credibility & strengthening corporate
governance. Given today’s dynamic economic landscape, there is no doubt that audit is no longer an option for entities to consider
adopting within their nancial ecosystem, instead, it has become a mandatory requirement and a compliance centric necessity for
businesses to stay on the path of nancial growth and resilience.

By Tushar Jesrani
Partner – Audit & Assurance
UHY James Chartered Accountants

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