Before looking into why JAFZA approved auditors are needed it is important to know that Jebel Ali Free Zone Authority (JAFZA) is a free trade zone in the UAE. There are thousands of foreign businesses operatingwithin JAFZA mainly because the zone offers a conducive trading environment.Unlike the mainland, foreigners owning companies in JAFZA enjoy full ownership of their businesses as well as enjoying lenient tax rates. Another reason why many companies have been attracted to establish in JAFZA is because there are no limitationsin terms of the number of foreigners or the countries from which you can employ them from.
Company audit in JAFZA
According to the authorities, all companies registered with JAFZA are expected to submit an annual audit report for license renewal purposes. With that said, it is vital to ensure that you get the right audit officer on the job. Since your company is already enjoying the benefits of trading from JAFZA, it is crucial to ensure that you find an approved auditor to evaluate your company assets.
The aim of conducting an audit is to determine the financial position of a company with all assets and debts considered. Without an approved auditor you may find yourself having problems in the future due to having the wrong information about your company due to poor auditing. JAFZA approved auditors are trained to perform company audits that follow the laws and auditing ethics.
Why a JAFZA approved auditor?
Hiring an approved auditor in JAFZA will remove a lot of work from your hands. Nevertheless, you will want an expert on this task so that you can minimize errors. An approved auditor will complete the job much faster and more accurately, leaving you with time to focus on the essential things.
As we now know, an auditor’s work is to evaluate your company, like identifying your sources of revenue and identifying expenditures that your company can avoid. Therefore, an approved auditor can help you improve your company’s financial standings through knowledge, skill, and experience.
Poor tracking of company assets is one of the areas that have made company loses. This is because fixed assets that are no longer in use are never followed, and most end up missing. Although the company operations may not be affected, the company will have lost money. With the help of an auditor, however, you can easily keep track of every asset.
By keeping track of all company assets and maintaining a good auditing record, a company is more likely to win people’s confidence. With all the books balancing investors may then feel confident to put in their money. It is also good to know that some investors will want to conduct their audit of a company if they are ready to invest.
Remember that when running a company in a particular region, you will have to respect that place’s legal requirements or else the relevant authorities will shut your company down. In JAFZA, an annual audit report has to be submitted by an approved auditor or firm.
Requirements for company audit in JAFZA
An auditor’s work is to make sure that a company can account for everything involved in its operation. Therefore, all bank statements and financial records must be presented, not forgetting the book of accounts. The company must also provide documents like memorandum of association and article of association.
An updated company licence will also need to be delivered to ensure that a company operates legally and is viable for an audit. If there are any audit and credit records, they also must be made readily available. All assets must also be listed, including their cost and maintenance cost records if any.
Bottom line
An independent auditor can go a long way to ensure that you maintain and expand your company in the long run. We here at Farahat & Co have authorised Auditors that can tend to all of your auditing needs. As auditing is one of the essential parts of managing a company in JAFZA we can ensure that you enjoy reduced cases of loss and accountability – things that can hit a company hard over a period of time.
So what are you waiting for? If this sounds like something you may need do not hesitate to call us to make an initial booking or enquiry.