Sharjah Airport International Free Zone (SAIF Zone), which was established in 1995, maintains a good reputation of being a preferred free zone among the businessmen who wish to invest in the emirate of Sharjah. The SAIF-Zone authority has stipulated the requirement that the companies operating within the free zone must get their books of accounts audited by auditing firms registered with the SAIF Zone. Getting the books of accounts audited is mandatory for the companies to get their Trade License renewed. The SAIF Zone authority mandates that the auditing should be performed by the listed auditors. The businesses need to comply with the annual audit requirement to prevent the occurrences of any financial anomalies. However, as per the stringent regulations, the companies are not allowed to have their books of accounts audited from auditors who are not in the SAIF Zone approved auditors list.
About Sharjah Airport International Free Zone
The SAIF-Zone has been attracting investors for nearly 25 years due to its efficient business setup procedures and an ideal location. Among the 7 emirates, Sharjah is known to be the industrial backbone of the UAE. Around 40% of the UAE’s total industries are situated in Sharjah. The top industries in Sharjah include petrochemicals, textiles, leather, food, and other non-metal industries. The companies in the SAIF Zone benefits from Sharjah’s excellent connectivity through the sea, air, and land. The Sharjah International Airport, Port Khalid, Port Khorfakkan and Hamriyah Free Zone Port make the business with the outside world more efficient. Apart from that the living in Sharjah is cost-efficient and the easy availability of affordable labour force is an advantage for the companies operating in the SAIF Zone.
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Why Audit Is Mandatory From Approved Auditors In Saif Zone?
The companies operating in the SAIF Zone must get the books of accounts audited and submitted to the free zone authority within 90 days from the end of the financial year. The audit report needs to be submitted to the SAIF Zone Authority along with the audited financial statements. The failure to comply with the mandatory audit requirement will lead the companies to legal actions including the non-renewal of trade license. To avoid such legal consequences, the companies need to appoint the best audit firms in Sharjah, UAE that are listed with the SAIF Zone authority.
The auditor registered with the SAIF Zone needs to analyze and report on the books of accounts of the company prepared in compliance with local and international regulations. The auditor’s report should state whether these accounts are prepared in accordance with these regulations. The auditor’s report should also state whether the accounts provide a true and fair view of the financial statements of the company and are free from material misstatements. The companies operating in the free zones are only allowed to perform the activities stated in the trade license and if any company in the SAIF Zone performs activities not listed in the license the auditor should state that in his audit report with other qualifications of the auditor if any.
How Should Companies Prepare & Maintain Accounting Record for Auditing?
It is mandatory for all the companies operating in the SAIF Zone to maintain the books of accounts that accurately describe the financial position of the company. With properly maintained books of accounts, the directors can 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
As per the regulations, the books of accounts must be kept at the registered office of the company within the SAIF Zone. The shareholders or representatives of the company should have access to the accounting records to conduct an inspection at any time. The first financial year can be decided by the companies operating in the SAIF Zone based on the date of incorporation as mentioned on the Certificate of Incorporation.
Auditing Services in Saif Zone
Getting the books of accounts audited by the best auditing firms in Sharjah, UAE helps the companies comply with the local and international regulations thereby improving the company’s credibility before the stakeholders, government, lenders, and other authorities. The SAIF Zone authorities mandate that the companies operating within the free zone must conduct audits only by the auditors approved by the SAIF Zone authority. Jitendra Chartered Accountants (JCA) has a branch office in SAIF ZONE and is a registered auditing firm with the SAIF Zone authority. JCA’s highly qualified Chartered Accountants would ensure that the SAIF Zone companies have maintained the records in compliance with the local and international regulations such as the IFRS.
JCA’s auditors are one of the best external auditors in the UAE who will verify the books of accounts and other supporting documents to express a true and fair opinion on the company’s financial statements. If the JCA auditors detect any weakness in the internal controls, then a management letter will be issued so that that management can take necessary actions on the weakness. A number of companies in the SAIF Zone have been availing the services of JCA for years to prepare the audit report and submit to the authority in time. JCA’s auditors have years of experience in assisting thousands of clients in complying with the regulations thereby helping them achieve their goals and business growth.
Documents Required by the Saif Zone Approved Auditors to Conduct the Audit
- Memorandum of Association (MoA)
- Articles of Association (AOA)
- Latest Trade License
- Trial Balance, Balance Sheet, Profit & Loss Statement
- Registration Details for VAT and Excise Tax (If Applicable)
- Books of Accounts
- Audit schedules (Fixed Assets Register, , Ageing of Accounts receivable & payable with provision for bad debts, accruals, etc.)
- Details of closing stock and work-in-progress at the year-end
- Details of fixed asset additions and disposals during the year with proper supporting
- Copies of bills and invoices