Audit & Assurance
The DMCC (Dubai Multi Commodities Centre) Free Zone was established in 2002 as part of Dubai's efforts to improve trade flows. It is widely regarded as one of the best free zones in the world and a popular global trade destination. As a prestigious location, DMCC offers everything required for a successful business setup. The energetic team, world-class administration, and inventive framework of DMCC make it a great choice for establishing your business. Each DMCC Freezone company must ensure that their company audits are performed on time by a DMCC Approved Auditor.
The Free Zone Authority has published a list of DMCC Approved auditors to perform auditing and related services as part of its free zone initiative.
Click here to view the latest DMCC Approved Auditors list. Reyson Badger has been registered with an account number of 409441, with an order number SR.Number of 156.
According to the DMCC, the DMCC approved auditors' list provides companies operating in the DMCC with the highest quality audit services. Registered Auditors in DMCC will have qualified chartered accountants, follow IFRS (International Financial Reporting Standards), and be affiliated with international organisations.
According to the DMCC website, all DMCC members are also required to submit their audited financial statements to a DMCC approved auditor, a process that will require some time to implement. A financial statement must be audited within 90 days after the end of a fiscal year, in accordance with DMCC regulations. As part of the auditing process in DMCC, there are also several requirements to be met.
Companies and their officials are required to cooperate with Auditors in the DMCC Free Zone. In accordance with these rules, companies are not allowed to provide auditors with incorrect information, confusing information, or dishonest information. Moreover, it is a violation of the law for companies to keep important information secret or destroy or hide documents from auditors.
Accounts preparation
Each year, directors of companies operating in the DMCC Free Zone are required to prepare financial statements. The accounts must adhere to International Financial Reporting Standards (IFRS) and accurately reflect the profits and losses of the company during that period.
A copy of the audited financial statements and the auditor's report must be submitted to the Registrar within five business days of the relevant General Meeting. Additionally, the Registrar may request additional information, including a summary report from DMCC. Companies are required to comply with these obligations and to provide the necessary documents to the Registrar promptly and in accordance with DMCC guidelines.
Accounts maintenance
Every company is required to maintain proper accounting records, which include supporting documents that provide enough information to clearly understand and explain the company's transactions. An accurate representation of the financial position of the company should be maintained in these records at all times. Maintaining these records in a timely and organized manner is vital to maintaining a reliable and accurate perspective on a company's financial situation whenever necessary.
Account copies
All shareholders of a company within the DMCC Free Zone are entitled to receive a copy of its audited financial statements as well as the auditor's report. If shareholders wish to obtain these documents, they may submit a written request to the company. Such requests must be fulfilled by the company within five business days. By doing so, shareholders are able to obtain important financial information pertaining to the company's performance, which allows them to make informed decisions and understand the organization's financial health.
Appointing auditors
An organization may hire a firm of auditors to thoroughly examine and provide a report on the accounts prepared in accordance with the specified regulations set by DMCC. Auditors can also be appointed solely for the purpose of reporting on a company's accounts, and not continuously.
DMCC regulations require that companies appoint their auditors during their annual general meetings. The auditor must be registered with the DMCC as an approved auditor, following the rules and guidelines established by the DMCCA that may be updated from time to time. DMCC Approved guarantees that the company's accounts are examined by a qualified professional who complies with DMCC requirements.
Auditors' Audit Report
A company's financial accounts are assessed based on the auditor's report. The report must clearly state whether the financial statements have been prepared according to International Financial Reporting Standards (IFRS). Additionally, the report should confirm that the accounts provide an accurate and unbiased picture of the company's profit or loss for that particular period.
The auditor's report should also include information regarding the activities that the company is permitted to conduct under its license. Other relevant matters or opinions may also be included, as required by the DMCC authority.
Auditors’ Duties and Responsibilities
DMCC's auditor is responsible for conducting thorough investigations in order to determine whether the company has maintained accurate and appropriate accounting records.
The auditors are responsible for ensuring that the company adheres to the guidelines regarding Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) during its business operations. A registered DMCC auditor should report any suspicious activities related to money laundering if they are discovered during the audit process.
In order to operate in the free zone, all companies must comply with certain regulations established by the DMCC. To obtain a fair picture of the financial position of companies in Dubai Multi Commodities Centre, the companies must provide DMCC auditors with true and fair documents. There is no provision for them to omit or conceal any documentation from DMCC-listed auditors.
DMCC Approved Auditors ensure accurate financial statements and compliance with Freezone regulations and rules by conducting audits. It is the mission of DMCC Auditors to help businesses manage risks, strengthen internal controls, and improve financial reporting through a wide range of services. As part of this process, business processes are assessed, risks are identified, and an audit strategy is developed. The DMCC Approved Auditors are also responsible for conducting a risk assessment, which identifies the likelihood and impact of risks, as well as the effectiveness of internal controls in mitigating them.
Following the completion of the risk assessment process, DMCC Auditors test the controls and details of the financial transactions in order to ensure that the financial statements are accurate and reliable. In the final audit report and financial statements, any issues or discrepancies discovered during the audit are highlighted. As well as identifying areas of weakness, they suggest ways to address these concerns. In this way, businesses can identify areas of weakness and strengthen their internal controls, thus reducing the risk of financial misstatement.
To know more about the audit process and deadline of financial statements in DMCC Free Zones, check out here.
Business audits are strictly regulated by the DMCC. A list of registered auditors is compiled by DMCC on a regular basis, who strictly adhere to the rules and regulations of the free zone. It is Reyson Badger's commitment to comply with international financial reporting standards as an approved auditor for the DMCC.
Besides reviewing your company's financial statements and accounting records, the audit team also examines all supporting documents. By utilizing our auditing services, you will be able to identify the risks associated with your business operations. Due to the fact we are DMCC Registered Auditors, we can help your company improve its corporate governance practices.
Here are the Audit Services, Reyson Badger offers in DMCC Free Zone.
| Internal Audit | Investigation Audit |
| External Audit | Information System Audit |
| Financial Audit | Tax Audit |
| Due Diligence Audit | Operational Audit |