The short answer
Most UAE free zone companies must file audited financial statements each year to renew their licence, and many mainland companies need them for banks, partners and corporate tax. We audit to International Standards on Auditing, plan the work around your licence renewal date and flag tax and control issues before they reach the FTA.
Who needs an audited financial statement in the UAE?
Any company whose free zone authority, regulator, bank or shareholders require it needs an audit, and in practice that covers most free zone entities and many mainland LLCs. Free zones such as DMCC, JAFZA and DAFZA ask for audited accounts at licence renewal. Banks ask for them before credit lines. Corporate tax raises the stakes further: a Qualifying Free Zone Person must keep audited financial statements to keep its 0% rate on qualifying income, and so must any taxable person with revenue above AED 50 million (Ministerial Decision No. 82 of 2023).
We start with a short scoping call: your licence type, year end, revenue, group structure and any deadlines. You then get a fixed fee and a calendar that works back from your renewal date.
What happens during a free zone audit?
A free zone audit follows the same standards as any statutory audit, but the output must match the authority's filing format and deadline. The work runs in four stages: planning and risk assessment, fieldwork on balances and transactions, a review of disclosures, and the signed report.
- Planning: we confirm materiality, related parties and the authority's submission portal.
- Fieldwork: bank confirmations, revenue testing, inventory and receivables.
- Tax checks: we test whether revenue that counts as non-qualifying stays under the de minimis limit of the lower of 5% of revenue or AED 5 million (Ministry of Finance free zone decisions).
- Report: signed by an auditor approved by your free zone.
“will no longer be able to benefit from the Free Zone Corporate Tax regime”
Why does the de minimis test matter for my audit?
Because failing it costs the free zone 0% rate for at least five years. A Qualifying Free Zone Person whose non-qualifying revenue exceeds the lower of 5% of total revenue or AED 5 million loses the regime and is taxed as an ordinary taxable person at 9% above AED 375,000 (WAM, Ministry of Finance announcement). Auditors see the revenue ledger line by line, so this is the right moment to classify each revenue stream and fix the bookkeeping before the tax return is filed.
What do internal and forensic audits cover?
An internal audit tests whether your controls work; a forensic audit establishes what happened when they did not. Internal audit engagements usually cover procurement, payroll, cash and inventory, with findings ranked by risk and a remediation plan your audit committee can track. Forensic work is evidence-led: transaction tracing, document review and interviews, written so it can stand up in a court or arbitration.
What is an ICV audit and when do I need one?
An In-Country Value (ICV) audit verifies the figures in your ICV certificate, which government entities and major national companies use to score suppliers in tenders. You need one if you bid for contracts that weigh ICV scores. The certificate is issued by an accredited certification body after reviewing your audited financial statements, so the two audits are best planned together.
Frequently asked questions
How long does a statutory audit take?
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For a small or mid-sized company with clean records, fieldwork usually takes one to three weeks, and the full cycle from planning to signed report four to eight weeks. Backlogged bookkeeping is the most common cause of delay.
Do mainland companies need an audit for corporate tax?
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Not every mainland company. Audited financial statements are required for Qualifying Free Zone Persons and for taxable persons with revenue above AED 50 million, under Ministerial Decision No. 82 of 2023. Others may still need one for their bank, partners or licence.
Can you audit a company in any free zone?
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Each free zone keeps its own list of approved auditors. We file only where we are on that list; check the approved-zones list on our About page or ask us for your zone.
What should I prepare before the audit starts?
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Trial balance, general ledger, bank statements and confirmations, fixed asset register, sales and purchase invoices, payroll records, contracts with related parties and last year’s audited accounts.
Sources
- Ministerial Decision No. 82 of 2023 on audited financial statements (revenue above AED 50 million and Qualifying Free Zone Persons) — UAE Ministry of Finance. Checked 16 October 2026.
- Ministry of Finance announces new decisions relating to Corporate Tax for Free Zones (Cabinet Decision No. 55 of 2023, Ministerial Decision No. 139 of 2023) — WAM, Emirates News Agency. Checked 16 October 2026.
- Cabinet Decision No. 116 of 2022 on the annual Taxable Income subject to Corporate Tax (AED 375,000) — UAE Ministry of Finance. Checked 16 October 2026.