Overview of Accounting and Auditing in Fujairah
Fujairah is one of the seven emirates of the United Arab Emirates (UAE). Fujairah, which is situated on the eastern coast, is renowned for its strategic location and role as a significant economic and trading centre. The emirate's economy is varied, with important segments in the shipping, logistics, tourist, and manufacturing industries. Fujairah adheres to the rules and standards established by the federal government of the UAE in terms of accounting and auditing requirements. The International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) serve as the foundation for the financial reporting system.
Accounting Requirements in Fujairah
The International Accounting Standards Board (IASB) and the IFRS Foundation developed and released a set of accounting standards known as the IFRS. The drafting and presentation of financial statements are governed by these standards, which offer direction and guidelines.
The basic goal of IFRS is to provide a standard financial reporting language that enables businesses to present comparable and transparent financial information. Regardless of the nation in which they conduct business, organisations may guarantee that their financial statements are consistent, reliable, and clear by adhering to the IFRS. These standards cover many different subjects, including income taxes, financial instruments, leases, and revenue recognition.
Companies can simplify international business transactions and entice investment from many nations by adopting the IFRS. In order to make educated judgments about investments and spot prospective possibilities, investors and analysts can analyze the financial statements of businesses operating in several countries.
Companies that are listed on the Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM), or NASDAQ Dubai (previously known as DIFX) are required by the Securities and Commodities Authority (SCA) to follow the International Financial Reporting Standards (IFRS) established by the UAE Central Bank. As a result, these businesses are required to keep their financial records in line with IFRS. A crucial component of running any business is bookkeeping, which enables companies to keep track of their spending and guarantee effective financial management.
Auditing Requirements in Fujairah
According to Commercial Companies Federal Law, No.32 of 2021, financial account auditing is a requirement for all businesses operating in the mainland UAE. These businesses must keep their financial records for a minimum of five years to be in compliance with the rules. On the other hand, businesses based in free zones are not required to submit an audit report or undergo auditing.
For an array of reasons, several UAE-based businesses choose to have audits performed on their financial records. This entails having an in-depth understanding of their financial situation, reviewing business development, and evaluating the organization's overall performance. While some businesses may just need bookkeepers to maintain daily records, auditors are essential to the completion of financial statements and the provision of the information required for management decisions.
Types of Audits
- Internal Audit: Internal audits are carried out by a company's internal audit department or a separate team within the company. The efficacy and efficiency of internal controls, risk management procedures, and governance frameworks are being evaluated. Internal audits give management information on areas that need improvement, aid in ensuring adherence to rules and regulations and strengthen the overall internal control environment.
- Compliance Audit: An organization's compliance with applicable laws, rules, policies, and contractual responsibilities is examined during a compliance audit. These audits make sure that the company complies with all applicable legal and regulatory standards for its sector or country. Compliance audits are designed to find any non-compliance problems, evaluate risks, and suggest remedial measures to reduce compliance failures.
- Financial Audit: The primary objective of financial audits is to assess the financial records, statements, and transactions of an organization. Independent external auditors carry out these audits in order to express an opinion about the accuracy, reliability, and fairness of the financial accounts. The auditors determine if the financial statements are accurate and fair representations of the organization's financial condition and performance. They also determine whether they have been produced in line with relevant accounting rules.
- Operational Audit: Operational audits look at an organization's operational practices, policies, and controls to gauge how well they work, how well they correspond with organizational objectives and more. These audits assess several operational elements like supply chain, human resources, sales, and marketing. Finding chances for process enhancement, cost-cutting, and improved operational performance is the goal.
- Forensic Audit: In order to identify and prevent fraud, financial misbehaviour, or unlawful activity within an organization, forensic audits look into and analyze financial data and transactions. To find errors, gather evidence, and support prospective legal actions or internal disciplinary measures, forensic auditors use specialized accounting and investigation procedures.
- Tax Audit: Tax authorities or agencies perform tax audits to examine the accuracy of an organization's tax returns as well as its adherence to applicable tax rules. These audits verify the organization's income, deductions, credits, and other tax-related data have been recorded truthfully
Services offered by Enterslice
Our team of knowledgeable experts at Enterslice is totally devoted to providing our clients with thorough accounting services. On the basis of our knowledge, we provide the following range of services:
- Aiding in the creation of precise accounting records that are compliant with applicable rules,
- Providing thorough financial statements gives a clear picture of how well a firm is performing.
- Tracking business spending and looking for possible financial irregularities.
- Changing obsolete computerized or paper-based accounting systems to platforms based on the cloud to increase accessibility.
- Creating cash flow statements, projections, budgets, and management accounts on a regular basis. to aid in decision-making
- Helping to prepare yearly statutory financial statements and making sure all filing requirements are met.
- Working together with auditors during the audit process to make it easier to evaluate the financial records of the business
- Providing treasury and payment processing know-how to simplify business processes
- Carrying out accounting, tax, and control evaluations of payment applications and expense claims.
- Supporting the setup of accounting systems, such as the creation of a chart of accounts, master data management, and customized reporting.
- Creating control procedures and accounting regulations for the accounting departments of our customers.
- Providing qualified managers and accountants on a temporary or part-time basis as needed.
- Assessing the correctness of accounting and making suggestions for improvement.
- Providing training programmes to improve the knowledge and abilities of internal accountants.
Our committed staff works hard to provide trustworthy and effective accounting services that are tailored to the unique needs of each client. To support the operational success of our clients, we place a high priority on accurate financial reporting, regulatory compliance, and well-informed decision-making.