Approved Auditors in DMCC

The DMCC (Dubai Multi Commodities Centre) Free Zone was established in 2002 as part of Dubai's efforts to improve trade flows. It is widely regarded as one of the best free zones in the world and a popular global trade destination. As a prestigious location, DMCC offers everything required for a successful business setup. The energetic team, world-class administration, and inventive framework of DMCC make it a great choice for establishing your business. Each DMCC Freezone company must ensure that their company audits are performed on time by a DMCC Approved Auditor.

DMCC Approved Auditors

The Free Zone Authority has published a list of DMCC-approved auditors to perform auditing and related services as part of its free zone initiative.

Click here to view the latest DMCC Approved Auditors list. Reyson Badger has been registered with an account number of 409441, with an order number SR.Number of 156.

According to the DMCC, the DMCC-approved auditors list provides companies operating in the DMCC with the highest quality audit services. Registered Auditors in DMCC will have qualified chartered accountants, follow IFRS (International Financial Reporting Standards), and be affiliated with international organizations.

According to the DMCC website, all DMCC members are also required to submit their audited financial statements to a DMCC-approved auditor, a process that will require some time to implement. A financial statement must be audited within 90 days after the end of a fiscal year, by DMCC regulations. As part of the auditing process in DMCC, there are also several requirements to be met.

Role of DMCC Approved Auditors

The role of a DMCC (Dubai Multi Commodities Centre) Approved Auditor is to ensure that member companies in the DMCC Free Zone adhere to high standards of financial reporting and compliance. Key responsibilities include:

• Audit and Verification: DMCC Approved Auditors are responsible for auditing the annual financial statements (AFS) of DMCC-registered companies, ensuring they are free from material misstatements and comply with International Financial Reporting Standards (IFRS)​
• Reporting Standards: The auditors must confirm that the financial statements provide a fair and true view of the company’s financial position. This includes verifying bank balances, confirming authorized company activities, and disclosing revenue from activities outside licensed operations​
• Compliance and Integrity: They are required to act with integrity, objectivity, and confidentiality. Auditors must avoid conflicts of interest and comply with legal requirements for disclosing information if necessary for investigations
• DMCC Cooperation: Approved auditors must cooperate with DMCC, providing necessary information and attending meetings upon request. DMCC also monitors auditors to ensure compliance, which can affect renewal or continuation as an approved auditor​

Step-by-Step DMCC Audit Process

Companies and their officials are required to cooperate with Auditors in the DMCC Free Zone. In accordance with these rules, companies are not allowed to provide auditors with incorrect information, confusing information, or dishonest information. Moreover, it is a violation of the law for companies to keep important information secret or destroy or hide documents from auditors.

Accounts preparation

Each year, directors of companies operating in the DMCC Free Zone are required to prepare financial statements. The accounts must adhere to International Financial Reporting Standards (IFRS) and accurately reflect the profits and losses of the company during that period.

A copy of the audited financial statements and the auditor's report must be submitted to the Registrar within five business days of the relevant General Meeting. Additionally, the Registrar may request additional information, including a summary report from DMCC. Companies are required to comply with these obligations and to provide the necessary documents to the Registrar promptly and in accordance with DMCC guidelines.

Accounts maintenance

Every company is required to maintain proper accounting records, which include supporting documents that provide enough information to clearly understand and explain the company's transactions. An accurate representation of the financial position of the company should be maintained in these records at all times. Maintaining these records in a timely and organized manner is vital to maintaining a reliable and accurate perspective on a company's financial situation whenever necessary.

Account copies

All shareholders of a company within the DMCC Free Zone are entitled to receive a copy of its audited financial statements as well as the auditor's report. If shareholders wish to obtain these documents, they may submit a written request to the company. Such requests must be fulfilled by the company within five business days. By doing so, shareholders can obtain important financial information about the company's performance, which allows them to make informed decisions and understand the organization's financial health.

Appointing auditors

An organization may hire a firm of auditors to thoroughly examine and provide a report on the accounts prepared in accordance with the specified regulations set by DMCC. Auditors can also be appointed solely to report on a company's accounts, and not continuously.

 DMCC regulations require that companies appoint their auditors during their annual general meetings. The auditor must be registered with the DMCC as an approved auditor, following the rules and guidelines established by the DMCCA that may be updated from time to time. DMCC-approved guarantees that the company's accounts are examined by a qualified professional who complies with DMCC requirements.

Auditors' Audit Report

A company's financial accounts are assessed based on the auditor's report. The report must clearly state whether the financial statements have been prepared according to International Financial Reporting Standards (IFRS). Additionally, the report should confirm that the accounts provide an accurate and unbiased picture of the company's profit or loss for that particular period.

The auditor's report should also include information regarding the activities that the company is permitted to conduct under its license. Other relevant matters or opinions may also be included, as required by the DMCC authority.

Auditors’ Duties and Responsibilities

DMCC's auditor is responsible for conducting thorough investigations in order to determine whether the company has maintained accurate and appropriate accounting records.

The auditors are responsible for ensuring that the company adheres to the guidelines regarding Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) during its business operations. A registered DMCC auditor should report any suspicious activities related to money laundering if they are discovered during the audit process.

Benefits of Choosing DMCC Approved Auditors

DMCC Free Zone auditors provide specialized auditing and advisory services to companies operating within the DMCC Free Zone. These services are crucial for maintaining compliance with DMCC regulations and ensuring financial transparency. Key services offered by DMCC-approved auditors include:

• Financial Statement Audits: DMCC-approved auditors conduct comprehensive audits of companies' financial statements, ensuring they are prepared in accordance with International Financial Reporting Standards (IFRS) and accurately reflect the company's financial status
• Compliance Assurance: Auditors help companies adhere to DMCC Free Zone regulations by verifying compliance in areas such as revenue reporting, expense classification, and adherence to the scope of licensed activities.
• Risk Assessment and Advisory: DMCC Free Zone auditors offer risk management and advisory services, helping companies identify financial and operational risks associated with their business activities and providing strategies for mitigation.
• Tax Filing and VAT Advisory: Many auditors also assist with tax and VAT compliance, offering guidance on VAT filings and advisory on optimal tax strategies to ensure compliance while optimizing tax liabilities.
• Company Formation and Financial Consultancy: DMCC Free Zone auditors provide business setup and consultancy services, advising companies on financial structuring, regulatory requirements, and efficient practices for sustained growth.

These services contribute to maintaining a transparent, compliant, and financially sound environment in the DMCC Free Zone.

Documents Required for a DMCC Audit

In order to operate in the free zone, all companies must comply with certain regulations established by the DMCC. To obtain a fair picture of the financial position of companies in Dubai Multi Commodities Centre, the companies must provide DMCC auditors with true and fair documents. There is no provision for them to omit or conceal any documentation from DMCC-listed auditors.

• Bank statements and confirmation slips of credit or debit transactions
• Deposit statements from the DMCC portal
• Invoices and bill copies
• Memorandum of Association (MoA)
• Articles of Association (AOA)
• Excise Tax and VAT Registration Details
• An up-to-date trade license

Benefits of Appointing a DMCC-Approved Auditor

DMCC Approved Auditors ensure accurate financial statements and compliance with Freezone regulations and rules by conducting audits. It is the mission of DMCC Auditors to help businesses manage risks, strengthen internal controls, and improve financial reporting through a wide range of services. As part of this process, business processes are assessed, risks are identified, and an audit strategy is developed. The DMCC Approved Auditors are also responsible for conducting a risk assessment, which identifies the likelihood and impact of risks, as well as the effectiveness of internal controls in mitigating them.

Following the completion of the risk assessment process, DMCC Auditors test the controls and details of the financial transactions in order to ensure that the financial statements are accurate and reliable. In the final audit report and financial statements, any issues or discrepancies discovered during the audit are highlighted. As well as identifying areas of weakness, they suggest ways to address these concerns. In this way, businesses can identify areas of weakness and strengthen their internal controls, thus reducing the risk of financial misstatement.

DMCC Free Zone Approved Auditors 

DMCC Free Zone Approved Auditors are designated audit firms qualified and approved by the Dubai Multi Commodities Centre Authority (DMCCA) to conduct audits for companies operating within the DMCC Free Zone. These auditors play a critical role in ensuring transparency, accuracy, and regulatory compliance within the Free Zone’s business environment. Here’s a breakdown of their key responsibilities and importance:

• Compliance with Standards: DMCC auditors ensure that companies comply with the International Financial Reporting Standards (IFRS) and DMCC regulations, promoting transparency and reliability in financial reporting.
• Audit Requirements: All DMCC Free Zone companies are mandated to have their annual financial statements audited by a DMCC-approved auditor. This ensures that the companies maintain accurate records, free from material misstatements due to error or fraud.
• Regulatory Role: By reviewing company accounts, DMCC Free Zone Approved Auditors help identify any discrepancies, non-compliance issues, or activities outside the scope of the company’s license. This helps in upholding the credibility and reputation of businesses within the DMCC Free Zone.
• Risk Mitigation: The audit process performed by these approved auditors also serves to detect early signs of financial risk, fraud, or other issues that could impact the stability of businesses in the Free Zone.

In summary, DMCC Free Zone Approved Auditors are essential partners for maintaining high standards of financial governance, instilling confidence among investors, and ensuring that companies adhere to regulatory frameworks.

To learn more about the audit process and deadline for financial statements in DMCC Free Zones, check out here.

Why Should You Choose Reyson Badger?

Business audits are strictly regulated by the DMCC. A list of registered auditors is compiled by DMCC regularly, who strictly adhere to the rules and regulations of the free zone. It is Reyson Badger's commitment to comply with international financial reporting standards as an approved auditor for the DMCC.

Besides reviewing your company's financial statements and accounting records, the audit team also examines all supporting documents. By utilizing our auditing services, you will be able to identify the risks associated with your business operations. Due to the fact we are DMCC Registered Auditors, we can help your company improve its corporate governance practices.

Here are the Audit Services, Reyson Badger offers in the DMCC Free Zone.