Rising Demand for Due Diligence Audit in UAE

The demand for Due Diligence Audit in UAE is ever growing with the economy gaining strength each day. The investors lining up to invest in the country are very keen on ensuring that they do not acquire much risk, when they are putting their hard earned money into new business. The due diligence in Dubai is getting more prominence as Dubai continues to showcase a strong financial growth prospects.  Due diligence audit is the equivalent of checking references before hiring. These audits are generally used to ensure that no hidden liabilities exist.

What is financial due diligence?

It is a reasonable level of enquiry into the financial statements with the objective of reducing the risk of the investor. The Due Diligence Audit in UAE focuses not only on the historical performance of the company but even the forecasted financial performance. The prospective investor is informed about his investment decision. The facts are gathered and analysis is further performed on the information.

The due diligence can be summarized into the evaluation of the information, interpretation of the information and further communication to the investor about the results.

 

Difference between due diligence and financial audit in Dubai are:

-The audits are governed by the accounting standards in each country while the due diligence is based on the agreement with client.

-While audit does only analysis on the historical data due diligence also focuses on forecasted financial performances.

-The audit is focused on the preparing of the financial statements while due diligence focuses on the quality of the earnings.

-The audit focuses on the preparing the financial statements on a particular period which does not change normally while the due diligence report has no such fixed scheduled format or period.

The investors may also perform business valuation in Dubai before acquiring the company to ensure that they are getting the right value for the amount paid. The demand for these services will only grow with more opportunities coming up in the country.

Due Diligence Audit in UAE is provided mainly by reputed audit firms in UAE.  The Emirates Chartered Accountants Group also provides these services to the prospective investors. For more details contact on “info@emiratesca.com”

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