How does a financial statements audit work?

[JackAlabama]

What about the details of invoices, do they usually check proof of work? I'm asking because crypto is quite a grey area, and it can be problematic even if someone is doing a legitimate business.

The Financial Statement may not be a problem, but I'm afraid things can scale, from an audit to scrutiny, require a license, hella compliance e.g. not just KYC but also the source of funds of your clients (very invasive to be done), etc

dont worry too much and always keep in mind wirecard, enron etc etc etc have all been properly audited.

 

[yngmind]

UAE also requires audits now, it's mandatory.

 

[Don]

One of the keys of financial success is having flexible and creative accountants/auditors on your payroll.

The audit is indeed often a misunderstood service.
Auditors are incentivised to maintain good client relationships and boost confidence for shareholders and other users of company accounts. That's what you are actually paying for.

lol, facts: EY has warned of going concern risks for just 20% of collapsed firms (in the UK)

Source:
https://auditreformlab.group.shef.ac.uk/reward-for-failure/

 

[Nomado]

UAE also requires audits now, it's mandatory.

Only for AED 50millions+ companies

#318
https://mof.gov.ae/corporate-tax-faq/

 

[yngmind]

Only for AED 50millions+ companies

#318
https://mof.gov.ae/corporate-tax-faq/

thanks for sharing

 

[uranium]

Only for AED 50millions+ companies

#318
https://mof.gov.ae/corporate-tax-faq/

AFAIK ifza is asking for audit for all. Doesn't matter what income

 

[Don]

AFAIK ifza is asking for audit for all. Doesn't matter what income

Audit of accounts is mandatory for Free zone companies (FZCO) and Free Zone establishments (FZE) but for some local or foreign companies, it may not be mandatory.
The commercial companies law states that the audit of accounts is mandatory for mainland companies. Every company must appoint an auditor to auditor for auditing their books of accounts authorized and licensed auditor, but many companies are not mandated to follow the requirements.

 

[Nomado]

Audit of accounts is mandatory for Free zone companies (FZCO) and Free Zone establishments (FZE) but for some local or foreign companies, it may not be mandatory.

Source ?

What do you make of the official link that I dropped few messages before?

 

[Don]

Source ?

What do you make of the official link that I dropped few messages before?

322. Ministerial Decision No. 82 of 2023 does not alter current obligations under the domestic legislation to prepare audited Financial Statements, but rather confirms such obligation solely for the purpose of the application of the Corporate Tax Law.

 

[Nomado]

322. Ministerial Decision No. 82 of 2023 does not alter current obligations under the domestic legislation to prepare audited Financial Statements, but rather confirms such obligation solely for the purpose of the application of the Corporate Tax Law.

Fine, but what is the initial law stating that audits for freezones are mantadory ?