Is financial audit mandatory or not in the UAE? Should the books of accounts be audited every year or not? Whether financial reports are to be submitted to any authority or not? These are the questions that comes into the mind of most of the owners of the “Small and Medium” business in the UAE. As perthe new UAE Commercial Companies Law, Federal Law No. 2 of 2015, Article 27, Chapter 2, every company shall appoint auditors for auditing their books of accounts by a licensed auditor registered under Ministry of Economy in the UAE. But many companies do not follow this requirement. In general, companies belonging toSME category get their books of accounts audited in the following circumstances.
Every company registered under UAE Commercial Company law must amend their Memorandum of Association (MOA) on or before 30th June 2017 to be in line with the provisions of the new UAE Commercial Company law issued in 2015. As per the provisions of the Law, it is mandatory to get the books of accounts audited every year. Hence with effect from 1st July 2017, every company registered under the law should get their accounts audited by a registered auditor.