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Financial Statement Audit

In today’s evolving economic and legal landscape, the importance of having confidence in financial statement audits cannot be overstated. Maintaining trust in the financial reporting process and the accuracy of financial information is paramount. This is why HLB Abu Dhabi is dedicated to consistently delivering financial statement audits at the highest standards.

We offer financial statement audit services to numerous clients throughout Abu Dhabi and the broader Middle East region. Our audit team’s extensive experience and expertise span across various industry segments and service sectors, allowing us to concentrate on critical business areas such as risk assessment, effectiveness of internal controls, and identifying potential fraud risks.

At HLB Abu Dhabi, our approach involves analyzing business performance against management objectives, evaluating business processes, assessing risks, and benchmarking against industry standards. We focus on comprehensively understanding every aspect of our clients’ operations, including:

  • Industry-specific processes
  • IT controls and management
  • Revenue cycle
  • Human resources and personnel
  • Business processes
  • Management of fixed and working capital
  • Controls over financial reporting

Enhancing Your Credibility

Financial statement audit services are a cornerstone of HLB Abu Dhabi’s professional offerings to clients. Over the years, we have consistently pursued excellence in this service by adopting new technologies, implementing advanced methodologies, and staying abreast of developments such as cybersecurity, regulatory changes, ISA, and IFRS.

Given the dynamic nature of regional and global economies, businesses face ongoing challenges. Therefore, having a trusted partner like HLB Abu Dhabi is crucial for navigating economic and accounting complexities arising from revised standards and changing regulatory environments.

With our extensive expertise, HLB Abu Dhabi provides financial statement audit services to guide you through uncertainties and manage risks effectively. We pride ourselves on a partner-led approach that emphasizes delivering high-level technical service. Our commitment includes meeting deadlines, attention to detail, and respecting the time and schedules of clients, whether they are publicly listed companies, privately held entities, not-for-profits, government departments, or smaller organizations.

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Frequently Asked Questions – Audit Services

What are general purpose financial statements?

General purpose financial statements are financial reports used by stakeholders such as creditors, lenders, government entities, and shareholders.

What are special purpose financial statements?

Special purpose financial statements are prepared for specific users or purposes, such as a particular project or based on cash basis accounting.

Who are Those Charged with Governance (TCWG)?

Those Charged with Governance are individuals responsible for making strategic decisions regarding the operations and financial reporting of an entity. In companies, this typically includes the Board of Directors, comprising both non-executive and part-time directors.

What distinguishes TCWG from management?

Management comprises the executive team responsible for implementing the decisions made by Those Charged with Governance. For instance, TCWG may oversee the preparation of financial statements under IFRS, while management actually prepares these statements.

What is the Conceptual Framework for financial reporting?

The Conceptual Framework for Financial Reporting provides guidance on the objectives and concepts underlying general purpose financial reporting. It incorporates:

  • International Financial Reporting Standards (IFRS)
  • Statutes and regulations like UAE Federal Decree-Law no. (32) of 2021
  • Professional and ethical standards related to accounting matters
  • General industry practices
  • Accounting literature
Why are audited financial statements crucial?

Engaging an auditor to audit financial statements and provide an opinion enhances credibility regarding the financial health of the company in the eyes of stakeholders.

Are financial statement audits mandatory in the UAE?

Under Article 27 of Federal Decree-Law no. (32) of 2021, companies must have their accounts audited by an independent auditor and present audited financial statements prepared according to IFRS.

Are IFRS financial statements obligatory in the UAE?

Companies falling under UAE Federal Decree-Law no. (32) of 2021, including those in DIFC, Nasdaq, ADGM, and banks regulated by the Central Bank of the UAE, must submit audited financial statements prepared under the IFRS framework.

How is a company's financial year determined in the UAE?

According to UAE Federal Law, a company’s financial year is determined by its directors and specified in its Articles of Association. Typically, the first financial year should not exceed 18 months from the date of company registration but should be at least 6 months. Subsequent financial years cover consecutive 12-month periods starting immediately after the previous financial year ends.

What is the retention period for accounting records?

Every company under UAE Federal Law must retain its accounting books at its principal office for at least five years from the end of the financial year.

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