DMCC Approved Auditors 2021 rule aim to register auditors who will ensure the best quality audit services offered to DMCC member companies and provide the assurance that the Audited Financial Statements represent true and accurate financial position.
DMCCA Company - Preparation of accounts
The Directors of every Company must procure the preparation of accounts for each
financial year of the Company.
The accounts must:
- be prepared in accordance with and comply with International Financial Reporting Standards;
- show a true and fair view of the profit and loss of the Company for the period and
of the state of the Company’s affairs at the end of the period; and
- be approved by the Directors and signed on their behalf by at least one of them.
Within six months, or such other period prescribed by DMCCA, after the end of the
financial year of the Company, the accounts for that period must be:
- prepared and approved by the Directors;
- examined and reported on by an auditor approved by DMCCA; and
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- laid before a General Meeting for discussion and, if thought fit, approved by its
Shareholders together with a copy of the auditor’s report.
Each Company must file a copy of the accounts and the auditor’s report with the Registrar within five Business Days of the relevant General Meeting, providing such additional information as requested by the Registrar.
Maintenance of accounts
Every Company must keep accounting records including underlying documents which are sufficient to show and explain its transactions so as to:
- disclose with reasonable accuracy the financial position of the Company at any time; and
- enable the Directors to ensure that any accounts prepared by the Company under
this Section 11 comply with the requirements of these Regulations.
Each Company’s accounting records must be:
- kept at the Company’s registered office or such other place that the Directors
- be open to inspection by an Officer or auditor of the Company at all reasonable
- preserved by the Company for:
i) in the case of a Company which is a taxable person for the purposes of the
tax laws applicable in the UAE from time to time, at least five years from
the end of the applicable tax period to which they relate;
(ii) in the case of a Company which is not a taxable person for the purposes
of the tax laws applicable in the UAE from time to time, at least five years
from the end of the calendar year to which they relate; and
(iii) in the case of accounting records relating to real estate, at least fifteen
years from the end of the calendar year to which they relate,or such longer period as may be required from time to time pursuant to any tax law applicable in the UAE; and
- otherwise kept and maintained in such manner as prescribed by DMCCA from time to time.
Appointment and removal of auditors
A Company must appoint a firm of auditors who must examine and report on the accounts
prepared pursuant to Regulation 71, in accordance with these Regulations. A Company
may, in its discretion, appoint an auditor solely to report on its accounts and not on a
general retainer basis.
A Company must appoint its auditor at a General Meeting.
- the auditor has been registered by DMCCA as an approved auditor;
- the auditor has, prior to the appointment, consented in writing to the appointment; and
- the Company is not, on reasonable enquiry, aware of any matter which should
preclude the auditor from giving its consent.
DMCC Approved auditor only?
Yes. An auditor must be registered by DMCCA as an approved auditor pursuant to approved
auditor rules published by DMCCA from time to time
Auditors' report to the Company
A Company’s auditor must make a report to the Company’s Shareholders on the accounts
examined by the auditor.
The auditor’s report must state:
- whether in the auditor’s opinion the accounts have been properly prepared in
accordance with International Financial Reporting Standards;
- that the accounts give a true and fair view of the profit or loss of the Company for
the financial year;
- that the accounts give a true and fair view of the state of the Company’s affairs at
- that the Company is undertaking only activities permitted under its Licence; and
- any other matter or opinion required by DMCCA from time to time.