Audit & Assurance
According to a recent declaration by the RAKEZ Authority, auditing would be required starting in 2020 for businesses operating in the Ras Al Khaimah Economic Zone (RAKEZ), which was created by the government of Ras Al Khaimah. Within six months of the completion of the company's fiscal year, the companies must submit copies of their audited financial statements for the 2019 fiscal year and any succeeding years. The registered auditors in RAKEZ must audit the books of accounts of the businesses operating there.
Audit firms that are not registered with RAKEZ are not permitted to conduct audits, liquidations, or provide services to RAKEZ-licensed companies. The new regulations are in place to ensure that registered companies comply with local and international regulations such as International Financial Reporting Standards (IFRS), Anti-Money Laundering (AML), and Combating Terrorism Financing (CFT).
RAKEZ is one of the largest economic zones in the UAE, hosting over 14,500 companies. It is situated in the northernmost emirate, Ras al Khaimah. The strategic location in Ras al Khaimah provides companies with access to markets in South Africa, Europe, Southern and Central Asia, and other Middle Eastern countries. The competitive real-estate prices in Ras Al Khaimah, as well as the availability of property on lease, are a big plus for investors. The emirate also has no strict limits on currency exchange or labor recruitment.
RAKEZ provides:
Companies registered with RAKEZ must appoint an auditor to examine and report on financial statements prepared by local and international regulations. The auditor's report must state whether the company's accounts are in accordance with the International Financial Reporting Standards (IFRS) and whether the company is engaging in money laundering.
The auditor's report must specify whether the accounts present a true and fair picture of the company's affairs at the end of the fiscal year and whether the accounts are free of material misstatements. The auditor must also state in his report whether the company is only engaging in activities that are permitted by its trade license. Before renewing the trade license, the authorities heavily rely on the auditor's report.
The RAKEZ-approved auditor must conduct investigations to determine whether the company has kept proper records. The auditor must also ensure that the company's accounts are consistent with the accounting records and returns. Failure to submit the audited financial statements will result in a fine of AED 2,500 and may even result in service suspension.
Companies operating in RAKEZ can select the best RAKEZ-approved auditing firms based on their reputation and experience.
In order to conduct the audit and assurance, the auditors request that the companies provide the documents corresponding to the relevant year, which simplifies the auditor's job of drawing an opinion on the financial position by analyzing the financial statements at year-end to ensure compliance with regulations. Companies are required to provide the following paperwork:
It is critical to note that companies must appoint auditors from the RAKEZ Approved List of Auditors. Reyson Badger is a highly regarded auditing and accounting firm in the UAE. Reyson Badger is registered with the Ras Al Khaimah Economic Zone Authority (RAKEZ). Our expert audit team analyses and reports on the accounts of the companies operating in RAKEZ.
As a RAKEZ-approved auditor, Reyson Badger provides professional audit services in the Ras al Khaimah Economic Zone.
Reyson Badger guarantees that your financial statements are true and correct. We examine the audit report to ensure that it reflects an honest opinion of the company's financial aspects. We ensure that the books of accounts comply with international standards. We use advanced audit techniques and data analytics to ensure complete accuracy. We identify flaws in internal control procedures and make recommendations. We prepare and present audit work on time in accordance with client requirements. Reyson Badger issues high-quality audit reports under RAKEZ regulations.
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