Why Audit Is Mandatory From Approved Auditors In HFZ?
HFZA requires companies operating in the HFZ to get their books of accounts audited by an independent external auditor due to the following reasons:
- The companies licensed by the HFZA need to assure that their businesses are running in compliance with the rules and regulations of both the Free Zone Authority and Federal Tax Authority (FTA) and the Anti-Money Laundering (AML) regulation.
- Getting the books of accounts audited by an external auditor in the UAE assures company’s top management that they are not hiding any financial wrongdoing from the authorities. The HFZ Authority gives utmost importance to the audited books of accounts submitted by an external auditor in the UAE.
- The HFZ authority and the company’s stakeholders rely heavily on the audit conducted by external auditors because they can make significant business decisions based on the audit report.
- The audit report ensures that the company’s accounts are prepared in accordance with the local and international accounting standards and the business is not engaged in any fraud or illegal or financial misconduct The companies can avail the services of reputed external auditing firms in the UAE to get their books of accounts audited
Documents Required by the HFZ Approved Auditors to Conduct the Audit
- Trial Balance, Balance Sheet, Profit and Loss Statements
- Audit schedules (depreciation, bad debt provisions, accruals)
- Details of closing stock and working in progress at the year end
- Details of fixed asset additions and disposals during the year with proper supporting
- Copies of bills and invoices
- Memorandum of Association (MoA)
- Articles of Association (AOA)
- Latest Trade License
- Registration Details for VAT and Excise Tax (If Applicable)
- Books of Accounts
Auditing Services in HFZ
Jitendra Chartered Accountants (JCA) is a registered auditing firm with the Hamriyah Free Zone Authority. JCA’s team of highly qualified auditors conduct the audit in compliance with International Financial Reporting Standards. Getting the books of accounts audited from JCA’s regulated auditors will ensure that the books of accounts provide a true and fair view of the financial position of the company. JCA’s audit report helps companies gain the confidence of the free zone authority, stakeholders and clients, which is crucial in a stringently-regulated country like the UAE.
Since years, companies in Hamriyah Free Zone rely on Jitendra Chartered Accountants’ auditing services for preparing and submitting the audit reports on time to the authority. JCA auditors are equipped with years of experience in assisting clients comply with regulations thereby ensuring the growth and stability of their businesses.
How Should Companies Prepare & Maintain Accounting Record for Auditing?
All the companies operating in the HFZ are required to keep accounting records that should sufficiently disclose the financial position of the company in an accurate manner. A properly maintained account must let the directors of the company ensure that the balance sheet and profit and loss accounts are prepared in compliance with International Financial Reporting Standards (IFRS).
The books of accounts need to contain a record of
- assets and liabilities of the company
- day-to-day entries of all sums of money received and expended
- matters that necessitated the receipt and expenditure
The accounting records must be kept at the registered office of the company in the HFZA. The books of accounts must be open to inspection by the company’s shareholders or representatives of the shareholder at any time. The companies operating in the HFZA should decide the first financial year based on the date of incorporation as mentioned on the Certificate of Incorporation.