The Accounting and Auditing Rules in the United Arab Emirates are regulated by the Ministry of Finance through various circulars issued from time to time. These rules are applicable to all entities in the UAE, whether they are companies that are established under UAE or foreign law.
To maintain their financial compliance with the law and serve as a gauge for upcoming company improvements and credibility, UAE enterprises must conduct audits. In order to assure the accuracy of statements and uncover fraud, it involves having an auditor examine and analyse an organisation’s books of account and determine whether earnings and losses match its financial report.
Every year, clients who have established a newly formed firm in Dubai and the UAE have a lot of questions about their accounting, bookkeeping, and audit duties.
UAE Commercial Companies Law, Federal Law No. 32 of 2021, Chapter 2, Article 27
Every corporation must have one or more auditors to review the books annually.
A balance sheet and a profit and loss statement must be included in the annual financial records that the company must prepare.
To provide a clear and accurate idea of profits and losses, the company must use International Accounting Standards and Practices when creating its periodic and annual reports.
The Accounting and Auditing rules in the United Arab Emirates are designed to protect investors and ensure the accuracy of financial reporting. These rules are complex, but they are essential for ensuring that businesses in the UAE operate transparently and responsibly. We hope this article has given you a better understanding of these rules and their importance.
Contact Adler and Partners for exclusive and accurate accounting and auditing services for your new business.