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    Country by Country Financial Reporting and Auditing Framework

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    United Arab Emirates – Horwath Mak (prepared September 2013)

    Preparation and Filing of Statutory Financial Statements

    Joint stock companies, limited liability companies and partnerships limited by shares registered in United Arab Emirates are required to prepare annual financial statements and file these with Ministry of Economy and Commerce, U.A.E and the Concerned Authority.

    Joint stock companies, limited liability companies and partnerships limited by shares are required to prepare their financial statements and get them audited within 3 months from the end of the financial year. They are also required to file the financial statements within 10 days of the approval to the above mentioned authorities.

    All  companies  and  partnerships  are  required  to  prepare  full  financial  statements including the Balance sheet , profit and loss account and other explanatory notes as required by the law.

    All the entities in UAE follow International Financial Reporting Standards (IFRS) to prepare the financial statements which fulfills the minimum requirements of the law and is also acceptable internationally to financial statement users like the regulatory authorities and financial institutions etc. 

    Financial Reporting Framework

    Free zone (FZ) companies in the UAE are normally required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS).

    All other companies/partnerships limited by shares  in the UAE, subject to any other requirements which may be otherwise specified, have the option to prepare their financial statements in accordance with any generally accepted framework but majority of the entities do follow International Financial Reporting standards (IFRS).

    Subsidiary companies of listed companies which are registered in other jurisdictions have an option to prepare their financial statements in accordance with the framework followed by the parent company.


    Audit Requirements for Companies Registered in United Arab Emirates.

    In the UAE the following form of companies must have an audit if at any time in the financial year if it's been:

    • Joint stock companies
    • Limited liability companies
    • Partnerships limited by shares
    • Any other business which is required by any other law.

     The law is silent about the audit of the small businesses. Normally small companies get themselves audited when they are required to do so by any regulatory body or financial institution or to meet any other special requirement.

    Auditor's Appointment, Rotation and Joint Audits

    Auditors in the UAE are appointed for a fixed period of one year and can continue as the auditor of the company after the first year subject to approval of the shareholders in the general assembly meeting. The UAE does not currently have any rules relating to mandatory rotation of audit firm but there are guidelines within the ethical standards regarding partner rotation.

    Auditing Standards

    Horwath Mak, the UAE member firm of Crowe Horwath International is required to undertake its audit and express an opinion on the financial statements in accordance with applicable laws of the country and International Standards on Auditing issued by IFAC. Those standards require us to comply with the code of ethics issued by IFAC.

    Ethical Framework

    There are no ethical standards specifically issued for UAE. All the firms here normally follow ethical standard issued by the IFAC. Some of the free zones have adopted the IFAC codes and made them mandatory for the auditors in the Dubai International Financial Center.

    In addition to that, all the practicing partners in Horwath Mak are members of different professional bodies including ICAEW, ACCA and other professional bodies which have their own ethical requirements for the members to follow.

    Audit Regulation

    Horwath Mak is subject to the following external and internal monitoring processes with regard to their audit practice:

    External Monitoring

    Free Zones in UAE have rigorous processes of monitoring and streamlining the auditing practice. They monitor the practice of audit firms and review their work on an annual basis. Based on the quality review, they conduct meetings with the practitioners and ensured the compliance of the relevant laws and ISAs in the audit.

    Main users of the financial statements of the companies in the main land are the shareholders and financial institutions. These financial institutions have their monitoring processes to rate the firm, based on their criteria.

    Internal Monitoring

    We have established annual monitoring procedures known as Quality Assurance Reviews (QAR), led by the QAR Partner and, run by the Horwath Mak UAE head office. The QARs are conducted under carefully defined procedures and address all our service lines and Practice Assurance, which exceeds what is required by regulations.


    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292

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