An Ultimate Guide Of Statutory Audit Services In Dubai – 2024

A statutory audit is an independent examination of a company’s financial records that are required by law. It’s a mandatory checkup to make sure the financial statements a company presents are accurate and reflect its true financial health. As a business owner if you are planning to get statutory audit services in Dubai, SPK Auditors can help you to achieve this goals.

This blog will give you full insights about statutory audit, what are its benefits & under what conditions its done.

1. What are the conditions under which the statutory audit is conducted?

Some key conditions determine whether a company in the UAE needs a statutory audit:

a. Company Type

Statutory audits are mandatory for public sector companies and companies required by the UAE Commercial Companies Law. This typically applies to companies with a large number of shareholders or a certain amount of annual revenue.

b. Independent Auditors

The audit must be conducted by an independent audit firm registered and approved by the UAE Ministry of Economy or other relevant authorities. Shareholders cannot appoint their internal auditors for a statutory audit.

c. Financial Statements

Companies must prepare annual financial statements that comply with UAE accounting standards. The statutory audit then verifies these statements for fairness and accuracy.

d. Reporting

The auditor’s report is submitted to the company’s shareholders and the relevant authorities in the UAE. This report provides transparency and assurance about the company’s financial health.

2. How is statutory audit services in Dubai useful for a firm?

A statutory audit offers several advantages to a firm like –

1. A clean audit report from a reputable firm acts as a stamp of approval on your financial statements.
2. Improved Corporate Governance
3. During the audit, auditors might uncover areas where the firm is vulnerable to fraud, errors, or inefficiencies. 
4. Statutory audits ensure your financial statements comply with relevant accounting standards and regulations.
5. The audit process often involves comparing your financial performance against industry benchmarks. 

3. Process of statutory audit services in Dubai

The statutory audit process in the UAE typically follows a well-defined structure:

• Planning and Appointment
• Understanding the Business
• Risk Assessment Procedures
• Testing Controls and Transactions
• Analytical Procedures
• Year-End Procedures
• Management Representations
• Audit Opinion and Reporting
• Management Response
• Submission to Authorities

4. How can SPK auditors help UAE-based firms in statutory audits?

SPK Auditors & Accountants is one of the best & professional statutory audit service providers in UAE. We have good experience of 25+ years and a highly experienced team. We always focus on providing personalized and customized services per our clientele’s requirements. Till date, SPK has catered to many industries like –

• Service companies
• Real estate
• Hospitality
• Trading companies
• Hospitals & clinics
• Shipping & cargo
• Courier service
• Contracting
• Manufacturing

SPK auditors & accountants are licensed professionals who perform independent examinations of a company’s financial statements. We assure that the financial statements are fair and accurate, and comply with relevant accounting standards.