Audit & Assurance Services UAE

Audit & Assurance Services in the UAE — Licensed, Independent & Comprehensive

Audit and assurance services are the cornerstone of investor confidence, regulatory compliance, and banking trust in the accuracy of any company's financial statements. Abdelhamid & Partners — Chartered Accountants & Auditors LLC (License: LC0106-01 | TAN: 30003958 | TAAN: 20033908 | Auditor Registry No. 956) delivers comprehensive audit and assurance services across the UAE — including statutory external audit under ISA, internal audit, compliance audit, and agreed-upon procedures. Our services are conducted in full compliance with UAE Ministry of Economy licensing requirements and Federal Tax Authority regulations. For a full overview of our service lines, visit our services page.

What Are Audit & Assurance Services and Why Do They Matter?

An external audit is an independent examination of a company's financial statements conducted by a licensed external auditor, with the objective of expressing a professional, impartial opinion on whether those statements present a true and fair view of the company's financial position in accordance with applicable accounting standards (IFRS or local standards). Unlike internal audit — which serves management — external audit is directed at external stakeholders: shareholders, banks, regulators, and investors.

In the UAE, Federal Decree-Law No. 32 of 2021 on Commercial Companies requires all limited liability companies (LLCs) and joint-stock companies to appoint a licensed external auditor and submit audited financial statements annually. Additionally, Ministerial Decision No. 82 of 2023 — issued under Federal Decree-Law No. 47 of 2022 on Corporate Tax — mandates audited financial statements for any taxable person whose annual revenue exceeds AED 50 million, and for every Qualifying Free Zone Person (QFZP). Non-compliance with either requirement exposes a company to legal and tax penalties.

Legal Framework & Professional Standards

  • Federal Decree-Law No. 32 of 2021 on Commercial Companies — Requires all LLCs and joint-stock companies to appoint a licensed external auditor and present audited financial statements to the competent authority annually. All LLCs are covered — there is no minimum size threshold.
  • Federal Decree-Law No. 47 of 2022 on Corporate Tax — Article 54 mandates retention of accounting records and supporting documents for a minimum of 7 years. Ministerial Decision No. 82 of 2023 (issued under this law) requires audited financial statements for entities exceeding AED 50 million in revenue or holding QFZP status.
  • Ministerial Decision No. 82 of 2023 — Defines the categories of taxable persons required to prepare audited financial statements for Corporate Tax purposes: entities with revenue above AED 50 million, and Qualifying Free Zone Persons (QFZPs).
  • Federal Decree-Law No. 28 of 2022 on Tax Procedures — Article 30 requires maintenance of accounting records to a standard verifiable by the Federal Tax Authority. Article 25 grants the FTA authority to conduct tax audits. Regular statutory audit substantially strengthens a company's readiness for FTA review.
  • Ministerial Decision No. 221 of 2023 on Transfer Pricing — Requires entities engaged in related-party transactions to maintain transfer pricing documentation aligned with OECD guidelines; audited financials are essential supporting evidence.
  • Cabinet Decision No. 129 of 2025 on Administrative Penalties — Sets updated penalty schedules for Corporate Tax violations; a compliant external audit is the primary defense against such penalties.
  • Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) — Classifies accounting and audit firms as Designated Non-Financial Businesses and Professions (DNFBPs), requiring auditors to conduct customer due diligence and report suspicious transactions to the Financial Intelligence Unit (FIU).
  • International Standards on Auditing (ISA) issued by IAASB — The primary professional framework governing external audit: ISA 240 (fraud), ISA 300 (planning), ISA 315 (risk assessment), ISA 320 (materiality), ISA 330 (responses to risk), ISA 500 (audit evidence), ISA 510 (opening balances), ISA 560 (subsequent events), ISA 570 (going concern), ISA 700 (audit report), ISA 705 (modified opinions).
  • ISRE 2400 — Limited Assurance Engagements issued by IAASB — Governs review engagements on historical financial statements where full audit-level assurance is not required.
  • ISRS 4400 — Agreed-Upon Procedures issued by IAASB — Applies to engagements where specific procedures are agreed upon with the client and the intended user.
  • International Financial Reporting Standards (IFRS) — The accounting framework mandatorily applied by most UAE companies; defines how financial statements subject to audit are prepared and presented.
  • Free Zone Regulations (DIFC, ADGM, JAFZA, RAKEZ, etc.) — Each free zone has specific audit requirements that may differ in minimum capital thresholds, audit frequency, and eligible auditor qualifications.

Key Facts — Audit & Assurance in the UAE

  • Mandatory by law for all LLCs and joint-stock companies under Federal Decree-Law No. 32 of 2021 — no size threshold.
  • AED 50 million revenue threshold: Ministerial Decision No. 82 of 2023 requires audited financial statements for Corporate Tax purposes for entities exceeding this threshold or holding QFZP status.
  • 7-year record retention mandated by Article 54 of Federal Decree-Law No. 47 of 2022 on Corporate Tax.
  • Auditor Registry No. 956 — Our official registration in the UAE Ministry of Economy's licensed auditors register.
  • ISA + IFRS — All our audit reports are issued under internationally recognised standards.
  • Bilingual reports — All audit reports available in Arabic and English to meet the requirements of banks, regulators, and international partners.

When Is Audit a Legal Requirement, Not a Choice?

All LLCs and Joint-Stock Companies

Federal Decree-Law No. 32 of 2021 on Commercial Companies requires every limited liability company and joint-stock company registered on the UAE mainland to appoint a licensed external auditor annually. There is no minimum size or revenue threshold — the obligation applies universally to all LLCs. Non-compliance exposes directors to regulatory sanctions under the same law.

Corporate Tax — Revenue Above AED 50 Million or QFZP Status

Ministerial Decision No. 82 of 2023, issued under Federal Decree-Law No. 47 of 2022, mandates that any taxable person whose annual revenue exceeds AED 50 million, and any Qualifying Free Zone Person (QFZP), must prepare audited financial statements for Corporate Tax purposes. Without audited financials, the Corporate Tax return of these entities may be challenged or their preferential tax treatment (0% rate for QFZPs) disallowed by the Federal Tax Authority.

Free Zone Requirements

Regulated free zones — including DIFC, ADGM, JAFZA, RAKEZ, and Sharjah free zones — each impose their own audit requirements under their constituent laws and regulations. DIFC and ADGM in particular require annual audited financial statements for all registered entities regardless of size, prepared in accordance with IFRS. Failure to comply may result in suspension of the company's registration or operating licence.

Bank Financing and Credit Facilities

The overwhelming majority of UAE banks require audited financial statements before granting or renewing credit facilities. An independent auditor's report signals to the bank that the financial figures presented have been independently verified and are free from material misstatement — making audit a commercial necessity for any company seeking financing.

Mergers, Acquisitions, and Investment

When entering a merger, selling a stake, or attracting equity investment, audited financial statements form the evidential basis of any business valuation. Buyers and investors rely on audited figures to assess a company's true financial position; unaudited statements are routinely rejected in M&A due diligence processes.

Our Audit & Assurance Services

1. Statutory External Audit

We perform statutory external audits in full compliance with ISA issued by IAASB, for companies required by Federal Decree-Law No. 32 of 2021 or free zone regulations to have audited financial statements. Our process covers risk-based audit planning (ISA 300, ISA 315), assessment of internal controls (ISA 330), substantive testing of financial statement balances (ISA 500), review of subsequent events (ISA 560), going concern evaluation (ISA 570), and issuance of the independent auditor's report (ISA 700). All reports are signed by a licensed engagement partner registered in the UAE Auditor Registry No. 956.

2. Limited Review Engagements (ISRE 2400)

Where a full ISA audit is not legally required but stakeholders need a moderate level of assurance, we offer limited review engagements in accordance with ISRE 2400 issued by IAASB. This service provides a "negative assurance" opinion — confirming that nothing has come to our attention to indicate that the financial statements are materially misstated — at a lower cost and shorter timeframe than a full audit. Suitable for mid-sized companies, startups, and entities presenting financial information to specific stakeholders rather than the general public.

3. Agreed-Upon Procedures (ISRS 4400)

We execute specific, pre-agreed procedures on defined financial data and report factual findings — without expressing an audit opinion — in accordance with ISRS 4400. This is commonly used in M&A due diligence, bank covenant verification, verification of grant eligibility, or where a counterparty requires confirmation of specific balances or transactions. The scope, procedures, and intended users are agreed in writing before engagement commencement. See our forensic audit services for engagements involving suspected fraud or disputes.

4. Tax Compliance Audit

We verify a company's compliance with UAE tax legislation, including VAT (Federal Decree-Law No. 8 of 2017), Corporate Tax (Federal Decree-Law No. 47 of 2022), and transfer pricing obligations (Ministerial Decision No. 221 of 2023). Our tax compliance audit identifies discrepancies between reported figures and tax filings before the Federal Tax Authority conducts its own review, substantially reducing exposure to administrative penalties under Cabinet Decision No. 129 of 2025. We operate as licensed Tax Agents (TAN: 30003958) enabling us to represent clients directly before the FTA.

5. Internal Audit & Internal Control Review

We evaluate the effectiveness of a company's internal control systems, risk management processes, and operational procedures — whether as a full outsourced internal audit function or as a co-sourcing arrangement alongside an existing in-house team. Our methodology follows the Global Internal Audit Standards (GIAS) issued by the Institute of Internal Auditors (IIA), effective January 2025, and the COSO Internal Control Framework. For companies required by SCA or CBUAE regulations to maintain an internal audit function, we provide a fully compliant and documented service. See our dedicated internal audit service page for full details.

6. Free Zone & Group Audit

We audit entities registered across UAE free zones — JAFZA, DAFZA, RAKEZ, Sharjah Media City, and others — in accordance with each free zone authority's specific requirements. For groups operating across mainland UAE and free zones, we coordinate audit procedures to cover all entities efficiently, including Qualifying Free Zone Persons (QFZPs) subject to Ministerial Decision No. 82 of 2023 and transfer pricing requirements under Ministerial Decision No. 221 of 2023. IFRS 10 (consolidated financial statements) applies where group reporting is required.

Our External Audit Methodology

  1. Audit Planning & Risk Assessment (ISA 300, ISA 315): We analyse the client's business environment, industry, and internal control framework to identify high-risk areas and direct audit effort proportionally. A written audit plan is agreed with management before fieldwork begins.
  2. Understanding Internal Controls (ISA 330): We document existing control systems, assess their design effectiveness, and determine the extent to which we can rely on controls to reduce substantive testing.
  3. Substantive Testing & Analytical Procedures (ISA 500, ISA 320): We perform analytical comparisons and detailed testing of transactions, balances, and supporting documents selected from risk-weighted samples, applying materiality thresholds established under ISA 320.
  4. Verification of Balances & Disclosures: We send external confirmation requests to banks, debtors, and creditors, and review all financial statement disclosures for compliance with the applicable IFRS or local accounting standards.
  5. Subsequent Events & Going Concern (ISA 560, ISA 570): We review events occurring after the balance sheet date through to report issuance, and evaluate whether management's going concern assumption is adequately supported by evidence.
  6. Management Letter & Draft Findings: We issue a management letter detailing all findings, internal control weaknesses, and corrective recommendations before the final audit report — giving management the opportunity to respond and take corrective action.
  7. Independent Auditor's Report (ISA 700, ISA 705): We issue the final auditor's report expressing an unmodified, qualified, adverse, or disclaimer of opinion as appropriate under ISA 705, signed by the licensed engagement partner (Auditor Registry No. 956).

Why Choose Abdelhamid & Partners for Audit & Assurance?

  • Licensed by the UAE Ministry of Economy — Licence No. LC0106-01
  • Registered in the UAE Licensed Auditors Registry — No. 956
  • Accredited Tax Agent — TAN: 30003958 | TAAN: 20033908 — enabling direct FTA representation
  • Fellow, Emirates Association of Accountants and Auditors — EAAA No. 124
  • Fellow, International Arab Society of Certified Accountants — IASCA No. 1361
  • Sector experience spanning trading, manufacturing, construction, services, hospitality, technology, and free zone entities.
  • Dual-licensed as external auditor and tax agent — providing integrated audit and tax compliance from a single engagement team.
  • Bilingual audit reports (Arabic & English) meeting the requirements of UAE regulators, international banks, and foreign investors.

Frequently Asked Questions — Audit & Assurance Services

Is external audit mandatory for all companies in the UAE?

Under Federal Decree-Law No. 32 of 2021 on Commercial Companies, all LLCs and joint-stock companies registered on the UAE mainland are required to appoint a licensed external auditor annually — regardless of size or revenue. In addition, free zone regulations (DIFC, ADGM, JAFZA, and others) impose their own mandatory audit requirements. Ministerial Decision No. 82 of 2023 further requires audited financial statements specifically for Corporate Tax purposes for entities with revenue exceeding AED 50 million or those holding QFZP status.

What is the difference between a full audit and a limited review?

A full external audit under ISA provides high (reasonable) assurance that the financial statements are free from material misstatement, culminating in an independent auditor's report under ISA 700. A limited review under ISRE 2400 provides moderate (limited) assurance through less extensive procedures, expressed as a negative assurance conclusion. The review is faster and less costly but does not satisfy audit requirements imposed by Federal Decree-Law No. 32 of 2021, free zone regulators, or Ministerial Decision No. 82 of 2023 — which specifically require a full audit.

How long does an external audit take?

In our experience, a statutory external audit typically takes between two weeks and three months, depending on: the size and complexity of the entity, the quality and organisation of accounting records, the number of entities or branches included in scope, and the responsiveness of management in providing documents and information. Companies maintaining well-organised records under IFRS, with reconciled balances and complete supporting documentation, consistently achieve faster audit completion.

Can you audit a company registered in a UAE free zone such as DIFC or ADGM?

Yes. We provide audit services for companies registered across all UAE free zones, including DIFC, ADGM, JAFZA, RAKEZ, and Sharjah free zones. Our reports are prepared in accordance with the specific requirements of each free zone authority and are IFRS-compliant. For Qualifying Free Zone Persons (QFZPs), our reports additionally address compliance with Ministerial Decision No. 82 of 2023 and transfer pricing documentation requirements under Ministerial Decision No. 221 of 2023.

What happens if the auditor identifies a problem in the financial statements?

If we identify a material misstatement or area of non-compliance, we communicate it to management first through a draft management letter, providing an opportunity to correct the financial statements before the auditor's report is finalised. If the matter is not corrected and remains material, we modify our opinion under ISA 705 — issuing a qualified opinion, adverse opinion, or disclaimer of opinion as appropriate. We never issue a clean report where material issues remain unresolved, as this would breach our professional obligations under IAASB standards and IESBA ethical requirements.

Does an audit help in obtaining bank financing in the UAE?

Yes, substantially. The vast majority of UAE banks require audited financial statements as a prerequisite for granting or renewing credit facilities and commercial loans. An independent auditor's report under ISA 700 gives the bank confidence that the financial figures presented have been independently verified — materially strengthening the company's creditworthiness assessment. Without audited financials, banks typically decline or significantly limit credit exposure.

What are the audited financial statement requirements for Corporate Tax purposes?

Ministerial Decision No. 82 of 2023, issued under Federal Decree-Law No. 47 of 2022 on Corporate Tax, requires every taxable person whose revenue exceeds AED 50 million in a tax period, and every Qualifying Free Zone Person (QFZP), to prepare audited financial statements for Corporate Tax filing purposes. Other taxable persons below this threshold may support their Corporate Tax return with unaudited financial statements, though audited financials substantially reduce the risk of FTA audit scrutiny and strengthen the overall compliance posture.

Contact Us

For a free consultation on your audit requirements:

  • 📱 WhatsApp & Phone: 00971507948028
  • ☎️ Office: 0097165289414
  • 📍 Sharjah — Al Qasimia — Imran Tower — Office 302

Abdelhamid & Partners — Chartered Accountants & Auditors LLC — Ministry of Economy Licence LC0106-01 | Auditor Registry No. 956 | Tax Agent TAN: 30003958 | EAAA Fellow No. 124 | IASCA Fellow No. 1361

External Audit Service
About Our Firm

Abdelhamid M. Abdelhamid — Licensed Chartered Accountant & Tax Agent, Abdelhamid & Partners. Ministry of Economy Licence LC0106-01 | UAE Auditor Registry No. 956 | Tax Agent TAN: 30003958 | EAAA Fellow No. 124 | IASCA Fellow No. 1361.

Last updated: 28 April 2026 — Reviewed in accordance with the latest UAE legislation and professional standards.

Contact us

Timing: Sat–Thu: 8AM–6PM 

Mobile\WhatsApp: 0507948028

Phone: 065610040

Email: info@abdelhamidcpa.com

Call Now Button