Audit and Assurance

Our approach assimilates rigorous standards of professional independence and objectivity with a methodology that emphasizes crucial risk areas and coordinates our technical skills with detailed knowledge of your organization and the industry. Audit procedures are tailored to clients’ operations and reporting requirements with a specific focus on each business and industry. The experience of the audit team, covering many industries and service sectors, enables us to focus on critical areas of risk, adequacy of internal controls, and potential areas of fraud.

HLB HAMT is conscious of the need of its clients for high-level technical and quality service. Our service focuses on the clients risk elements and time and schedules, whether the client is publicly listed, is a privately held company, a not-for-profit entity, a government department or a single-man company.

Recognition of client services

We at HLB HAMT do not compromise our service quality with our clients at any cost, which includes the continued involvement of the partners in the client engagement and support the clients in their business decisions. We work as a team with our staff and the client and cost-effectively give exceptional client services. Due to our services, HLB HAMT has been awarded the best audit firm in the United Arab Emirates for two years in a row, and through our network, we have been recognized as “Network of the year” two times in recent years globally.

Client experiences

• Listed company audits
• Large private companies
• Multinational corporations and UAE Subsidiaries
• Family businesses
• Mainland and free trade zone entities
• Not-for-profit organizations

Our Audit Services

Frequently Asked Questions – Audit Services

DAFZA

1. Can a DAFZA (Dubai Airport Free Zone) register the Company list in the stock exchanges in UAE?

   In the UAE, a DAFZA-registered PLC may list its shares in any one of the following exchanges in UAE;

   • DFM
   • ADX
   • Nasdaq Dubai

   Dubai Financial Market (DFM) and Abu Dhabi Stock Exchange (ADX) are regulated by SCA, whereas the DFSA regulates Nasdaq.

   There might be additional eligibility requirements for a DAFZA PLC to pursue the listings with any of the exchanges mentioned above; in 2021, the DFM issued its own listing rules for free zone companies in UAE.

   SCA’s approval is mandatory for the companies pursuing listing in DFM and ADX; DFSA’s approval of the IPO is required if the Company chooses Nasdaq for the listing.

DIFC

1. How many years do the accounting records need to be kept for a DIFC-registered company?

   A DIFC-registered company needs to keep its accounting records for at least six years from the date upon which the Company created the document or for some other period as may be prescribed in the respective regulations (Clause 122(2).

2. What is the period of the first financial statements for a new company registered in DIFC?

   Generally, the first financial statement period for a DIFC-registered company as per Article 123 is a maximum of 18 months from the day the Company is incorporated as determined by the Company’s directors.

Mainland

1. Is Audit of financial statements mandatory in UAE?

   As per Article 27 of UAE Federal Law, no 2 of 2015, every Joint Stock Company or Limited Liability Company shall appoint one or more auditors to audit the Company’s books of accounts yearly. All the other types of companies may appoint an auditor under the provisions of this Law.

2. How many years should a mainland company in UAE maintain the accounting records?

   As per Article 26 of UAE Federal Law no 2 of 2015, every Company must maintain accounting records for at least 5 (five) years from the end of the Company’s financial year. Electronic copies are acceptable.

General

1. What is the financial year followed in UAE for auditing the financial statements?

   The UAE government prescribes no specific financial year. The financial year should be 12 months and acceptable for up to 18 months for the first financial year (newly formed companies). Most entities follow January to December (The calendar year) except for subsidiary companies that match the Parent Company’s financial year outside UAE.

2. Is there a requirement to submit the audited financial statements to the regulators in UAE?

   • Listed companies must submit the audited yearly financial statements to the respective stock exchanges in UAE before March 31st
   • Central Bank-regulated entities like banks, financial institutions, and exchange houses should submit audited yearly financial statements before March 31st.
   • Insurance companies, and brokers under the Central bank’s purview, must submit their audited financial statements within four months.
   • As per their regulation, free zone authorities require entities to submit their yearly audited financial statements to the regulators, generally three or six months at the end of the financial year.
   • Hotels operating in UAE must submit the yearly financial statements to Tourism Department within six months of the financial year.
   • Foreign companies’ branches must submit yearly financial statements when renewing their commercial license.

HAFZE

1. Are there any capital adequacy rules to be followed by the shareholders of a registered Establishment in the Hamriyah Free Zone?

   Suppose the net assets of a Free Zone Establishment fall below 75% of its Legal share capital,  the shareholder of that establishment should take such steps as appropriate to remedy the situation to restore at least 75% of its share capital as reasonably practicable. (Article 17(N) of implementing rules and regulations).

2. Is Audit of financial statements mandatory in HAFZA?

   Yes, According to Article 17 of implementing rules and regulations concerning the establishment of the free zone, establishments at Hamriyah Free Zone are required to appoint auditors from the approved list by the HFZ Authority and shall deliver a copy of the auditor’s report to the FZE Unit of HFZ Authority, together with the annual financial statements.