An external audit in Dubai, like in any other location, refers to the examination of a company’s financial statements, records, and internal controls by an independent third-party auditor. The purpose of an external audit is to provide an objective assessment of the financial health and accuracy of the company’s financial reporting. In Dubai, as well as in many other jurisdictions, external audits are often required by law for certain types of businesses. Regulatory bodies and authorities may mandate that companies undergo annual external audits to ensure transparency, accountability, and compliance with financial reporting standards. Key aspects of an external audit in Dubai may include:

• Financial Statements Review: Auditors examine the company’s financial statements, including the balance sheet, income statement, and cash flow statement, to ensure they are prepared in accordance with relevant accounting standards.
• Compliance: Auditors assess whether the company adheres to local and international financial reporting standards, as well as any specific regulations applicable in Dubai.
• Internal Controls: The audit may involve an evaluation of the company’s internal control systems to ensure the reliability and accuracy of financial information.
• Fraud Detection: Auditors may perform procedures to detect and prevent fraud, assessing the risk of material misstatements due to fraud.