In the past few years. Before the global pandemic, we have seen a huge growth in the hospitality sector in the United Arab Emirates. The tourism sector as well as the travel sector has witnessed a huge boom. This was possible as the government of the country was trying to shift the focus from oil and hydrocarbon sector to the other sectors in the country. To support this the government created various tourist attractions in the country such as shopping destinations, tourist spots, easy transportation, etc.
Dubai is famous among the people as the go to destination for shopping. It is a home to a number of businesses, retails shops, shopping malls, etc. each of such shop which are independent or are situated in a mall need to conduct an audit which is known as Gross Turnover Audit. It is also known as an Audit of Sales. The conducting of such audit by a shop has been deemed mandatory by the government. This means that every business has to present the audit report at the end of the financial year to the relevant authority. This is where the approved auditors will come into the picture.
What is Audit of Sales and why is it required?
The government of the United Arab Emirates requires that all the shops which are located either in a shopping center or a shopping mall need to provide an audit report for all the sale which has been made in the financial year. This audit of the shops is mandatory in the United Arab Emirates and is known as Audit of Sales.
This audit has been deemed mandatory by a the government so that in the long run the government can be sure that no illegal or fraudulent activity is being done by the business entity. This audit will help both the management as well as the government to have a clear picture of the total sales made that financial year. The audit report generated in the end of the financial year can be used to generate an accurate financial picture of the business.
What are the benefits of Audit of Sales?
An Audit of Sales will allow the management of every business entity to better understand the present business and will also help in formulating future plants. Some of the major benefits of Audit of Sales to a business are as follows:
- The audit report prepared at the end of the audit process will assist the management to identify all the transactions made and also will help to identify the control measures to be used.
- With an Audit of Sales the mall management will be able to find out if the business is complying with all the rules and regulations of the jurisdiction.
- The final projections and results of the audit report will be considered while deciding upon the rent to be given by a business.
These are some of the important benefits which can affect a business in a huge way.
Documents to be maintained
There are a number if documents which are to be maintained by a business. The concerned authority can also ask for any other relevant document during the audit to further understand the current situation of the business. These documents include:
- The relevant trade license
- Bank Statement of the Cash Sales Deposits
- Sales repot of all the point of sales on a month by month basis
- Bank Statement depicting revenue or sales figures
There can be other documents which can be demanded by the concerned authority to further verify the financial transactions made. This is the reason why the business should take the assistance of a reputed audit firm so that the business faces no problem in the future.
If you are looking for such service for your business in the United Arab Emirates then JAXA Chartered Accountants can help you in this matter. The experts at JAXA will provide customized solution to whatever problem the business is facing and will also help in creating a future plan for the business. For more details on the services provided to a business, feel free to Contact Us. We will be glad to assist you.