What to check before appointing an auditor in the UAE: approved-auditor lists, IFRS competence, independence, fees, red flags and the questions to ask — plus the new Corporate Tax audit rules.
By Mohamed Ashfaq, Chartered Accountant · Updated 2026-09-08 · 10 min read
An audit report is read by your free zone authority, your bank, potential investors and, increasingly, the Federal Tax Authority. Since 2025 audited financial statements are mandatory under Corporate Tax for businesses with revenue above AED 50 million and for every Qualifying Free Zone Person, so the auditor's work now directly supports your tax position. A weak audit can be rejected by an authority, delay a licence renewal or leave errors in the accounts that surface in an FTA review.
UAE financial statements are prepared under IFRS or, for smaller entities, IFRS for SMEs. Check that the firm handles the standards that typically bite: IFRS 15 revenue (contracting, subscriptions), IFRS 16 leases (property and vehicles), IFRS 9 expected credit losses on receivables, and IAS 2 inventory costing. The Corporate Tax computation starts from these numbers, so errors carry straight through to tax.
Free zones generally require audited statements within three to six months of year-end for licence renewal, using their approved auditors, often uploaded through the authority portal. Mainland LLCs are required by the Commercial Companies Law to appoint an auditor and keep audited accounts; banks and government tenders will ask for them. Both are now overlaid by the Corporate Tax audit thresholds.
Fees depend on turnover, number of entities and branches, quality of the books, industry risk and urgency. Well-kept cloud books can halve audit time. Be wary of very low quotes: they usually mean minimal testing, and an audit that fails a bank's or authority's review costs far more to redo. Ask for a fixed fee in an engagement letter that states scope, deliverables and timeline.
Our audits are led by an ICAI Chartered Accountant with more than fifteen years across India and the UAE, planned around your authority's deadline, and delivered with a practical management letter. Because we also handle VAT and Corporate Tax for hundreds of UAE businesses, our audit work routinely identifies tax exposures before the FTA does. Where independence rules prevent us from auditing accounts we prepared, we will say so at the first meeting and recommend a suitable independent firm.
Annually, covering your financial year. Free zones require it for licence renewal; mainland LLCs are required to maintain audited accounts; Corporate Tax mandates it above AED 50 million revenue or for QFZPs.
Trial balance and ledgers, bank statements, sales and purchase invoices, contracts, fixed asset register, payroll, VAT and Corporate Tax filings, licence and constitutional documents, and last year's audited statements.
Two to four weeks for an SME with organised records, longer where books need reconstruction first.
Not for the same entity without independence safeguards; most authorities and professional bodies prohibit auditing your own work. Use separate firms or separate, ring-fenced teams.
They are discussed with management first. Correctable errors are adjusted; unresolved material issues lead to a qualified opinion. Addressing findings early usually preserves a clean opinion.
Yes, but it is simpler at year-end. The incoming auditor must communicate with the outgoing firm and review opening balances.
Founder of Ashfaq and Associates, Dubai. Chartered Accountant (ICAI) with 15+ years in audit and tax across India and the UAE. About the firm →
This guide is general information based on UAE law and FTA guidance as at the update date, not professional advice. Rules change; confirm your position with a Chartered Accountant before acting.
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