Audits in the UAE — What You Need to Know
An audit is an independent examination of your company's financial statements by a registered auditor who verifies that the accounts give a true and fair view of your financial position.
Types of Audit
Statutory Audit Required by law. The auditor issues a formal opinion on your financial statements, which is then submitted to the relevant authority (free zone regulator, bank, or government body).
Internal Audit An optional review of your internal controls, processes, and risk management — usually conducted for larger businesses or those with investors.
Compilation / Agreed-Upon Procedures A less formal engagement where an accountant compiles or reviews your financial records without issuing a full audit opinion. Common for mainland companies with bank requirements.
Who Must Have a Statutory Audit in the UAE?
| Entity Type | Audit Required? |
|---|---|
| ADGM companies | Yes — all companies |
| DIFC companies | Yes — all companies |
| DMCC companies | Yes — DMCC-approved auditor |
| JAFZA companies | Yes — under JAFZA Regulations |
| UAE Mainland LLC | Not mandated by Companies Law (but often required by banks) |
| Qualifying Free Zone Persons (CT) | Yes — required for QFZP status |
What Does the Audit Process Look Like?
- Kounted prepares your financial statements and trial balance
- You appoint an approved auditor (Kounted can recommend one)
- The auditor requests supporting documents and conducts fieldwork
- The auditor issues a signed audit report
- The report is submitted to your free zone authority or used for banking/CT purposes
How Kounted Supports Your Audit
Kounted prepares all audit-ready workpapers, schedules, and reconciliations so your auditor can complete the engagement efficiently. We coordinate directly with your auditor to minimise demands on your time.