About Us
Alliance CA is one of the best auditing firms in the UAE providing external auditing services following IFRS (International Financial Reporting Standard) and in compliance with the laws, rules, regulations, and business practices of the UAE. The external audit report provided by Alliance CA is crucial for working with local authorities and engaging with banks and other financial institutions.
External Audit Procedure in the UAE
Appointing an Auditor
Management and shareholders appoint a certified, independent auditor based on experience and qualifications at the annual meeting.
Letter of Acceptance
The auditor issues a letter of acceptance, or engagement letter, detailing the audit's scope and both parties' responsibilities.
Audit Process
Data collection, IFRS analysis, financial checks, and accounting practice examination to identify errors or fraud.
Evidence Collection
Gathering evidence is key to confirming accounting accuracy and compliance with policies, including asset ownership verification
Report Submission
The auditor submits a detailed report, offering professional opinions and advice for the organization’s future actions based on audit findings.
The Importance of External
Audits in the UAE
Mandatory by UAE law, external audits provide critical assurance on a company’s financial health, enhancing credibility and investor confidence. Conducted by independent auditors, these audits verify compliance with IFRS and GAAP, playing a key role in financial transparency, error identification, and operational legitimacy.
Legal Requirement and Benefits
External audits, compulsory for UAE companies, verify legal compliance, enhancing investor confidence and supporting corporate governance.
Unbiased Evaluation
Independent auditors conduct these audits, offering objective insight into a company's financial health and operational integrity.
Credibility and Legitimacy
Validates financial statements and reports, essential for securing loans, renewing licenses, and maintaining stakeholder trust.
Error Identification and Risk Reduction
Identifies inaccuracies in financial statements, reducing potential risks and ensuring accurate profit and loss evaluations for better decision-making.
Essential Documents for Conducting an External Audit
Receipts and invoices for fixed assets, vital for accurate balance sheets and financials.
Documents and transaction details of all company bank accounts for financial scrutiny.
Payroll expense documents for understanding organizational tax liabilities and payroll expenses.
Crucial for auditors to assess the organization's financial obligations and fund management.
Enables thorough inspection of debit and credit balances for financial accuracy.
Why Choose
Alliance CA
We are the approved GOLD partners and also certified advisors of New Zealand-based accounting software Xero. Xero is mainly made for the ease of maintaining and controlling various financial records by the owners, accountants, partners, and other users of accounting information. Please feel free to contact us for more information on how XERO can be implemented for your business.
Frequently asked questions
External audits include financial statements audits, operational audits, and compliance audits.
A qualified audit report certifies financial statements reflect a true and fair view. An unqualified audit report states that the financial statements reflect a true and fair view without any limitations.
Businesses registered under the trade-free zones hold trade licenses that require annual financial statements to be audited at the time of renewal.
Yes, external auditors can rely on internal audits.
Internal auditors are hired by the firm as employees to oversee the accounting and auditing services required by a company on a day-to-day basis. External auditors are independent and are hired as consultants.
External auditors double-check the same records that internal auditors work on to ensure quality control of internal audits.