Many UAE companies need audited financial statements, whether because of their free zone, their licensing authority, their shareholders or their bank. For a business going through an audit for the first time, the process can feel uncertain. In practice, auditors ask for much the same things every year, and most of the pain can be avoided with preparation.
What the auditor will want to see
Your auditor needs to be able to trace the numbers in your financial statements back to reliable evidence. Expect requests along these lines:
- A trial balance and draft financial statements for the year.
- Bank reconciliations and bank confirmations for every account.
- Aged lists of receivables and payables that agree to the ledger.
- A fixed asset register with additions and disposals supported.
- Supporting schedules for accruals, prepayments, provisions and related-party balances.
- Key contracts, licences, and shareholder or board resolutions.
Start before year end
The single most useful step is to close the books properly before the auditor arrives. That means every balance sheet account reconciled, cut-off checked around the year end, and unusual items explained in writing. When schedules are ready and agree to the trial balance, fieldwork is shorter, queries are fewer and the audit fee is easier to control.
Keep one owner for queries
Audit queries arrive throughout fieldwork. If they go to whoever happens to be available, answers become inconsistent and slow. Appoint one person to receive, track and answer every query, and agree response times with the auditor at the start.
Treat findings as useful information
At the end of the audit you may receive a management letter with observations on your controls and processes. These are worth taking seriously. They are an independent view of where your finance function is exposed, and addressing them makes next year’s audit easier.
A simple timeline
- Two to three months before year end: readiness review and a list of known issues.
- Year end: close, reconcile and prepare the audit file.
- Fieldwork: one owner for queries, answered quickly.
- After sign-off: act on the management letter.
How we help
We do not carry out the statutory audit. We prepare your business for it: readiness assessments, year-end closing, financial statements, audit schedules and coordination with your appointed auditor. Read about our Audit & Assurance Support.
This article is general information, not tax or legal advice. Rules change, and every business is different, so speak to an adviser about your own position before acting on it.