All That You Wanted to Know About DMCC Approved Auditor

If you’re one of those SMEs believe that audit is required for big business entities only then before you face a public audit which happens to be intimidating for you, remember that audit is mandatory for all enterprises operating in the UAE. According to DMCC (Dubai Multi Commodity Centre) company regulations, before appointing an auditor all DMCC companies should make sure that the auditor appointed is registered to be a DMCC approved auditor which can be found from DMCC’s approved auditor lists also.

Is it important for DMCC Companies to produce their audited financial reports to the authorities?

Obviously, Each DMCC enterprise is expected to upload their audited financial statements together with the summary sheet (as concluded by auditors) to DMCC’s official portal within next 90 days after the end of that financial year. If there is any necessity, the auditor you appoint can suggest you how to apply for having an extension, which may be sanctioned.

What kind of consequences you can face if your business in DMCC is not audited or you simply overlook appointing a DMCC approved auditor?

It is not going to be a good experience for any businessperson. Of late, the public authorities are taking very serious steps on this especially with the implementation of VAT in Dubai. It has been strictly said all financial statements must be audited only by auditors approved by DMCC; second, its submission time has equally been benchmarked by 90 days from completion of the financial year. Failing which is supposed to attract very high penalty including cancellation of trade license even as per the provisions of the department. Be careful!

What does a DMCC approved auditor do?

Unlike average professionals, auditors approved by DMCC area highly specialized team of experts. Outfitted with audit experts like CAs, CPAs, CIAs and ACCAs, etc, they audit your books of accounts according to ISA (International standards of auditing). They deliver audit services that are industry-specific, risk-based and individualized to your business types, its framework, and operational procedures. Aside from verifying your existing internal control systems, they redesign them to make your financial systems free of fraud, dependable and accurate. With their in-depth industry knowledge, they analyse risk factors related to materials misstatements, your investments and guide the management about their future action plans. You will find their recommendation in the summary section of your audited report.

What type of documents you should maintain for Audit?

Typically, you are supposed to maintain and submit the following list of the document before the auditors to get started:

•  Legal papers: Memorandum of Association, Articles Of Association, Renewed Trade license copy with original, Certification of incorporation, Tenancy contract if any, Share certificates, etc.;

•  Bank statements (including all confirmation copies from banks);

•  Confirmation of balance from debtors, creditors and major vendors or third parties in the specific format given by the auditors;

•  Copies of ledgers, sales and purchases invoices, files of bills payable and receivables, expense bills documents like hotel bills, airfare etc.

•  Trial balance and books of accounts

While these are the documents that you must keep ready before the date of an audit begins, depending on situations, the auditor may ask for some other documents as per necessity.