DAFZA Approved Auditors

Dubai Airport Freezone, pioneered in 1996, is a bustling commercial center situated at the epicenter of global trade. DAFZA, Which has easy access to the world's best global airport is a great gateway to the Middle East as well as unparalleled connectivity to Europe. All those companies that are DAFZA registered are required to get assistance from a DAFZA-approved auditor for inspection and accounts reporting.

Twelve percent of Dubai's exports came from DAFZA in the first nine months of 2019. DAFZA is an attractive site for foreign investors due to its proximity to Dubai International Airport, which serves more than 220 destinations on all six continents with more than 150 airlines.

DAFZA today has over 2700 registered enterprises consisting of 20,000+ experts, and has become a business-focused regulatory and tax-free environment that provides total control, complete repatriation of revenues, and a variety of excellent facilities. Incorporating these many companies, DAFZA follows strong rules and regulations. DAFZA Approved Auditors, help you get your financial statements right, complying with all the DAFZA directives.

Registered Auditors in DAFZA

Above mentioned is the official certification from Dubai Airport Free Zone Authorities, validating Reyson Badger as a DAFZA Approved Auditor.

DAFZA requires all its audit procedures to be conducted by a DAFZA Approved Auditor. These auditors are responsible for maintaining compliance and integrity over all the companies throughout the Dubai Airport Free Zone.

An auditor on the DAFZA-approved auditor's list is the only person authorized to audit companies in the Dubai Airport Free Zone Authority. It is the responsibility of the registered auditor in DAFZA to ensure that all books of accounts and transactions are kept in good condition and free of inconsistencies, demonstrating compliance with international and local laws. In addition, they must verify that no activities other than those permitted by the trade license have been carried out by the company.

Audit firms that are not registered with the Dubai Airport Free Zone Authority (DAFZA) are not permitted to audit or liquidate enterprises or premises located in DAFZA.

Role of Auditors in DAFZA

• Examine records, reports, operating methods, and documentation to determine if defined internal control processes have been followed.
• Compare the assets and liabilities with the documentation.
• Analyze audit findings and communicate them to firm management through a final audit report.
• Investigate and comply with the various security laws that are in effect at the federal, state, and local levels. 
• Monitoring compliance with requirements and advising management on actions that should be taken.
• Conduct a comprehensive analysis of material assets, net worth, liabilities, capital stock, surplus, income, and expenses.

Responsibilities of a DAFZA Approved Auditor

• Auditors in DAFZA have a comprehensive understanding of compliance standards and regulations applicable to companies located in the Dubai Airport Free Zone.
• DAFZA-approved auditors provide a minimum level of assurance that their audits are conducted by IFRS
• You must appoint approved Auditors of DAFZA to alleviate any financial stability risks
• Based on the audit, the auditors in DAFZA issue an opinion regarding the company's financial statements.
• They are responsible for evaluating accounting systems and books to ensure that they are effective, efficient, and compliant with recognized accounting procedures.

What is the importance of audits for DAFZA companies?

The DAFZA Audit requirement was introduced to ensure that registered organizations follow local and international standards, such as the International Financial Reporting Standards (IFRS), Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT).

 Also, it is important to note that an audit is required both for Free Zone Establishments (FZE) and Free Zone Companies (FZCO).

Benefits of Appointing a DAFZA-Approved Auditor

Provides a Comprehensive Report

DAFZA Approved Auditors perform a comprehensive review of the business procedure as well as confirm the accuracy of the information contained in the accounts. They will offer an organized summary of all business processes and assist the organization in taking the appropriate measures to address any delayed or incorrect procedures. Furthermore, the report provides a thorough analysis of the processes of the various departments of the company.

Assurance of Compliance

The auditors confirm that the account report complies with the norms and regulations of the authorities. Performing regular audits helps the accounting department maintain compliance with the applicable laws and regulations, and ensures that the organization is aware of new regulations.

Brings Investors In

During the audit process, DAFZA auditors prepare a report that summarizes the past and present work comprehensively and accurately. By reviewing this report, investors will be able to make an informed decision regarding their investment in the companies. As part of the investment evaluation process, the investor examines the audit report to determine whether the company is on track to become profitable and whether investing in the company is a wise decision. It is easier for an interested investor to make a choice when an external auditor is involved.

Minimizing Waste

Considering that the auditors will streamline all processes, there will be very little opportunity for lost time or resources. The management will be able to focus on the departments that require the most attention and improve them with the help of a proper and accurate report. In addition to improving profitability, the firm gains access to a greater number of resources and personnel. Also, it would provide a solution to the issue of unemployment within the organization.

Contributes a Distinctive Viewpoint

As a third party without any relationship to the organization, DAFZA Approved Auditors can provide a fair report and relevant opinions. In order to improve the profitability of the firm, the auditor strives to reduce waste within the organization.

Analyzes Errors

A thorough analysis of the audit report is conducted by management in order to determine whether any procedures need to be corrected. As a result, the organization will be able to recognize the vulnerability, and appropriate measures will be taken to mitigate it.

Improves Internal Controls and Procedures

As DAFZA Auditors are familiar with the entire system and manage the environment, they can identify problems in accounting processes and implement solutions to improve business efficiency and reduce errors.

Enhances Credibility

In order for a company to maintain market credibility, it is necessary to have external auditors verify its financial statements. Companies are advised by DAFZA Auditors on whether to seek financing or sell their businesses in the future. The provision of audited financial statements ensures that there are no errors or misdeeds in the reports, increasing the probability that the company will achieve its goals.

Assures Shareholders

A small board of directors is responsible for the governance of some companies on behalf of their shareholders. There may be several shareholders who are remote or do not play an active role in the day-to-day operations of the company. Shareholders are assured that the company works in their best interests when an independent report is provided for the financial statement. Any flaws that have not been disclosed to shareholders are identified in the external auditor's report.

Provides a Thorough Understanding of a Business's Financial Operations

It is possible to evaluate an organization's accounting process and make improvements to it by working with a DAFZA Approved Auditor.

Auditors in DAFZA - A Mandate Requirement

Companies registered as auditors in DAFZA must employ an authorized auditor to review and report on accounts prepared in accordance with local, state, federal, and international requirements. In order to ensure that firms are not engaging in money laundering, the auditor's report should clarify whether the financial statements of the company comply with International Financial Reporting Standards (IFRS).

The registered auditor in DAFZA is responsible for ensuring that the books of accounts are accurate and complete, that no transactions are left unrecorded, that the accounts present a true and fair picture of the company's affairs at the end of the fiscal year, and that there are no material errors. Furthermore, the auditor must ensure that the company's accounting records and returns are in compliance with VAT requirements. The auditor must also declare in his report that the business has only conducted activities that are permitted by its business license. In determining whether to renew a trading license, the authorities generally rely on the findings of the auditor. It is therefore mandatory that you use a DAFZA Approved Auditor in order for your financial statements to be considered by the authorities.

Check out here to learn how UAE Corporate Tax will affect the DAFZA Companies.

DAFZA's Regulations for Audit

• Audits may only be undertaken by organizations registered with the Dubai Airport Free Zone Authority.
• Audits are required for both Free Zone Companies (FZCO) and Free Zone Establishments (FZE).
• A company that is registered in DAFZA must adhere to international and local regulations such as the AML and CFT regulations as well as the International Financial Reporting Standards.
• Also needs:
• Proof of address.
• Details of the ultimate beneficial owners.
• Company profile, including a bank reference letter if necessary.
• Audited financial statements are not necessary.

Document Required to Conducted a DAFZA Audit

• Statement of Bank Accounts
• Credit/debit transaction confirmation
• Invoices and bill copies
• Accounts books
• Recent trade license
• Memorandum of Association (MOA)
• Article Of Association (AOA)
• VAT and Excise Tax Registration Details

Audit procedure in DAFZA

• The financial statements prepared are evaluated by the DAFZA-approved auditor.
• Audit reports are prepared by DAFZA auditors in accordance with International Financial Reporting Standards (IFRS).
• In order to ensure the integrity of the books of account, an audit report is presented to DAFZA.
• During the audit process, the auditors in DAFZA should ensure that the corporation has not engaged in any activities that are not permitted by the corporation's trade license.
• Approved Auditors in DAFZA evaluate the company's compliance with VAT and ensure that proper financial records are maintained.

How to find a DAFZA Approved Auditor?

• The first step in choosing a DAFZA Auditor is to check whether the auditor is on the DAFZA Approved Auditors list. Here is the official list of DAFZA Approved Auditors. https://www.dafz.ae/
• Qualification and Expertise: Try to choose audit firms that have the expertise and necessary qualifications to handle audits in DAFZA.
• Quotes: Choose audit firms that give you effective pricing with respect to the services they are offering. Try to get quotes for 4 or 5 DAFZA DAFZA-approved auditors, have thorough research about the audit firm, and choose the best one.

Reyson Badger - DAFZA Approved Auditors

An audit firm is like investing in your company's long-term financial prosperity. If you are a company operating in DAFZA, you know the rules and regulations implemented for the DAFZA Free Zone. If you are looking for a firm to follow these laws and regulations and get your audit done efficiently, look no more than Reyson Badger, a DAFZA approved Auditor for all your auditing needs. Choose an auditor listed on the DAFZA Registry to ensure the stability of your financial health.

Using Reyson Badger's expertise, you will be able to comprehend:

• Identifying unethical business practices through business insights, procedures, and metrics
• The goal is to help you get a high audit score so you can improve your reputation.
• By streamlining your company's accounting and bookkeeping, enhancing the accuracy of VAT filings.
• The sources of income are specified and communicated to management.
• On the basis of the audit findings, a business appraisal is performed and ensures that the business is financially stable with positive cash flow.
• Reports are available on the financial statements of FZE and FZCO businesses operating in DAFZA.
• Honest assessment of a business' financial position is provided.

Here are the Audit Services, Reyson Badger offers in DAFZA Free Zone.