UAE Audit Requirements For Companies
First Financial Year Audit: Mandatory after the initial financial year ends.
Company Type & Location:
Mainland Companies: Always require an annual audit.
Free Zone Companies: Most require annual audits; check specific free zone regulations.
Foreign Branch Offices: Mandatory annual audit.
Corporate Tax Triggers:
Revenue exceeding AED 50 million.
Being a Qualifying Free Zone Person.
Licensed Auditor: Must appoint a UAE-licensed and MOF/FTA registered auditor.
Key Documents:
Trade License, MoA, AoA.
Bank statements (from incorporation).
All financial records (invoices, receipts, payroll).
VAT returns (if registered).
Fixed asset register.
Record Retention: Maintain financial records for a minimum of 7 years.
Penalties: Significant fines for non-compliance.
In the dynamic and complex UAE business landscape, navigating UAE auditing and compliance frameworks is essential for sustainable success. Whether you operate in Dubai’s Free Zones or on the mainland, understanding audit requirements UAE helps protect your business reputation, satisfy regulators, and instill stakeholder confidence. AEY Auditing of Accounts, a trusted Dubai audit firm, simplifies these requirements with professional guidance tailored to your business needs.
What is a Financial Audit UAE?
A financial audit UAE is an independent examination of your financial statements to ensure accuracy, completeness, and compliance with relevant laws and IFRS UAE standards. Per the UAE Commercial Companies Law, both mainland and Free Zone companies must engage qualified auditors for annual external audit services.
Why In UAE Audit Requirements Matters:
- Regulatory Compliance: Both mainland audit UAE and Free Zone audit Dubai businesses must submit audited statements annually to licensing authorities.
- Investor Confidence: Transparent reporting builds trust among partners, lenders, and shareholders.
- Risk Mitigation: Audits help detect fraud, misstatements, and internal control weaknesses early.
Internal vs External Audit
- Internal audit services UAE focus on operational efficiency, risk management, and governance.
- External audit UAE is an independent verification essential for statutory compliance and financial integrity.
Corporate Tax Audit UAE
The UAE introduced corporate tax UAE effective for fiscal years starting on or after 1 June 2023.
Key points:
- Profits up to AED 375,000 enjoy a 0% tax rate; profits above are taxed at 9%
- Corporate tax audit UAE ensures financial statements align with tax return submissions, enabling accurate tax computation under financial reporting standards UAE.
- A corporate tax audit prepares firms for FTA scrutiny, verifying revenue, deductions, and arm’s-length compliance.
VAT Compliance UAE
The UAE’s VAT system imposes a 5% consumption tax, and businesses must:
Register when taxable supplies exceed AED 375,000/year
File VAT returns regularly, retain records for at least five years
Manage input & output VAT correctly to avoid errors or penalties
Failure to comply can result in fines, license suspension, or legal enforcement.
Tax advisory UAE services help businesses structure finances, maintain accurate VAT bookkeeping, and reduce compliance risk.
AML Compliance UAE
The UAE mandates robust Anti-Money Laundering compliance UAE frameworks—including Customer Due Diligence, Suspicious Transaction Reporting (STR), and appointment of an MLRO. PASs and auditors regularly review these during compliance audits.
International Financial Reporting Standards (IFRS UAE)
Adherence to IFRS UAE is required for most licensed entities. This promotes global comparability and transparency in financial reporting standards UAE, particularly important for investors, regulators, and listed companies.
Due Diligence UAE
When businesses pursue expansion or partnerships, thorough due diligence UAE ensures informed decisions. This includes financial, operational, ESG, and compliance reviews prior to mergers, acquisitions, or strategic alliances.
These combined frameworks form a robust business compliance UAE foundation that supports credibility and sustainable growth.
Why Choose AEY Auditing of Accounts
As a leading Dubai audit firm, AEY Auditing combines rigorous technical expertise with deep knowledge of UAE auditing, local regulations, and market nuances. We offer
Integrated services: External audit UAE, corporate tax audit UAE, VAT compliance UAE, internal audit services UAE, and ESR/AML reviews
Personalized solutions for both Free zone audit Dubai and mainland audit UAE entities
Certified practitioners seasoned in IFRS UAE and UAE regulatory standards
A client-centric approach with clear timelines, transparent pricing, and practical guidance
Contact AEY Auditing of Accounts for a comprehensive consultation on your UAE audit requirements, tax advisory UAE, or accounting services Dubai
