Audit & Assurance Services in UAE

Yes, statutory audits are mandatory for most UAE-registered companies. Under the UAE Commercial Companies Law (Federal Law No. 32 of 2021), mainland companies are required to have their financial statements audited annually by a licensed external auditor. Free Zone companies must comply with their respective Free Zone authority requirements, most of which also mandate annual audits. Additionally, VAT-registered businesses and Corporate Tax registrants are expected to maintain audited or IFRS-compliant financial records.

An external audit is conducted by an independent, licensed audit firm to provide an objective opinion on whether a company's financial statements are fairly presented in accordance with IFRS or applicable accounting standards. An internal audit, on the other hand, is performed by a company's own internal team or outsourced professionals to evaluate internal controls, operational efficiency, and risk management — focusing on improving business processes rather than providing a statutory opinion.

The duration of an audit in UAE depends on the size and complexity of the business. For small to medium-sized companies, a statutory audit typically takes 2–4 weeks. For larger organizations with complex transactions, multi-jurisdictional operations, or complex tax positions, it may take 6–12 weeks. HAMG works efficiently with clients to gather documentation and complete audits within agreed timelines, minimizing disruption to business operations.

For a statutory audit in UAE, companies typically need to provide: general ledger and trial balance, bank statements and reconciliations, sales and purchase invoices, payroll records, fixed asset register, VAT returns and FTA correspondence, existing agreements and contracts, previous year financial statements, and shareholder agreements or Memorandum of Association (MOA). HAMG provides a detailed document checklist tailored to each client's structure and industry.

Most UAE Free Zone authorities require annual statutory audits as a condition of license renewal. Free Zones such as DMCC, JAFZA, ADGM, DIFC, and others specifically mandate that companies submit audited financial statements as part of their annual compliance obligations. With the introduction of UAE Corporate Tax, even previously exempt Free Zone entities may now need IFRS-compliant financial records, making proper auditing more critical than ever. HAMG advises clients on the specific audit requirements of their Free Zone.

An assurance engagement in UAE is a professional service where an independent practitioner evaluates a subject matter — such as financial information, controls, or compliance processes — and expresses a conclusion designed to enhance the confidence of the intended users. Unlike a statutory audit which focuses on historical financial statements, assurance services can cover future-oriented information, internal control reviews, regulatory compliance checks, ESG reporting, or any other area requiring independent verification. HAMG provides both reasonable assurance and limited assurance engagements tailored to UAE business and regulatory requirements.