A financial statement audit provides independent assurance that an entity's annual financial statements present a true and fair view (or are presented fairly, in all material respects) in accordance with the applicable financial reporting framework, such as IFRS or another relevant framework.
At CLA Emirates, we perform full-scope statutory and voluntary financial statement audits for businesses across the UAE, including mainland entities and Free Zone companies. Our audits are conducted in accordance with International Standards on Auditing (ISAs) and culminate in an independent audit opinion that is widely recognized by banks, regulatory authorities, shareholders, and other stakeholders, including the Federal Tax Authority where audited financial statements are required for regulatory or tax compliance purposes.
Financial statement audit
A financial statement audit is an independent examination of the balance sheet, income statement, cash flow statement and notes, resulting in an auditor's opinion on whether they are free from material misstatement.
The work is performed under International Standards on Auditing (ISAs). An IFRS financial statement audit tests recognition, measurement, presentation and disclosure — not just whether the numbers add up. Revenue recognition, expected credit losses and lease accounting are the areas that most often need adjustment in UAE mid-market accounts.
Mandate for audited financial statements in the UAE
For most businesses in the UAE, audited financial statements are an annual compliance requirement. Mainland companies are generally required to prepare audited financial statements in accordance with the provisions of the UAE Commercial Companies Law. Similarly, many Free Zone authorities require audited financial statements as part of their annual licence renewal or ongoing compliance obligations, although the specific requirements vary by Free Zone and licence type.
The UAE Corporate Tax regime also mandates audit requirements in certain circumstances. As per Ministerial Decision No. 84 of 2025, taxable persons with annual revenue exceeding AED 50 million, all Qualifying Free Zone Persons (QFZPs) claiming the 0% Corporate Tax rate, and Tax Groups are required to maintain audited financial statements, with Tax Groups specifically required to prepare audited special-purpose aggregated financial statements. These requirements apply in addition to any audit obligations arising under the UAE Commercial Companies Law, the regulations of the relevant Free Zone authority, or other applicable sector-specific legislation.
Our methodology
An annual financial statement audit Dubai companies can rely on depends on the partner, not the process document. Our engagements are partner-led from planning to signature, backed by the strong audit methodology of in compliance with the International standards on auditing.
