Importance Of JAFZA Approved Auditors In Accounting Process
25

May 2020

Auditing is one of the most important factors in realising if the business is profitable or if there is some ambiguity in the accounts. That is why to set up a company which gives you profits, it's important to have trustworthy auditors. This article is about the importance of approved auditors in JAFZA (Jebel Ali Free Zone Authority).

JAFZA is one of the established free zones in the UAE and is an excellent place for a profitable business. Being a massive hub for business and profits for the country, it is essential that the accounting and auditing of the companies in JAFZA should be given in responsible and trustworthy hands. That's the auditing in JAFZA is done by approved auditors only.

This blog is about the part that approved auditors play in making the companies' accounting function in a better way, as JAFZA is considered as one of the most important business hubs in UAE. The blog will unfold the importance of approved auditors along with information on how JAFZA is as a free economic zone in UAE.

About JAFZA

The Jebel Ali Free Zone Authority (JAFZA), is as the name suggests is a free economic zone in UAE. Free economic zones are the areas where the trade of goods and products at privileged tax and customs rates. The idea for free economic zones was initially introduced to boost international trade in a particular area by giving them incentives like 100% ownership by a foreigner or a foreign company. Currently, UAE has around forty-five free zones.

JAFZA was established as a free economic zone in UAE in the year 1985 and is spread across an area of around fifty-seven square kilometres. It has more than seven thousand global companies, and the impressive fact is that more than a hundred companies established there are included in the Fortune Global 500 companies. JAFZA got the  ISO 9001:2000 certifications in 1996, and it aims to stay strong and helping the UAE develop financially and become one of the most significant business hubs in the world. There are a lot of benefits of setting up a business in JAFZA, and some of them are discussed in this article in order to make the readers realize that it is a great business opportunity to set up a business there.

Benefits Of Setting Up A Business In JAFZA

Here are some of the benefits of starting a business in JAFZA

  1. It provides with hundred per cent foreign ownership which is the most significant advantage as the mainland does not provide foreign investor with such benefit.
  2. As JAFZA is a well established and developed place, it has fantastic infrastructure and communication.
  3. There is no restriction on hiring employees from other countries. They allow you to hire foreign employees also.
  4. Custom duties in export and import are zero per cent, which is a huge advantage for traders there.
  5. It gives you a concession on tax also, i.e., you have to pay zero percent corporate tax for fifty years.
  6. Income tax there is also zero percent.

Importance Of Approved Auditors In JAFZA

Auditing is accessing the efficacy of a company's or a trade's internal control. Maintaining a good record for the internal control of a company is an essential factor to judge the growth of the same company. An auditor is a person who looks into the matter, examines and reviews the financial records and also makes sure that the company complies with appropriate tax law. Therefore it is essential that the person who looks into the matter is reliable and trustworthy and hence hiring an approved auditor is always recommended to prevent any fraudulent or misappropriate practice going in the company.

Auditing is a significant factor on which the growth of a company depends. JAFZA is a platform which provides business opportunities to people with added benefits to it. Auditors also help you to grow your business and assist you in analysing the errors and mistakes in your accounting.  Therefore it is vital that auditors hired are reliable. Here we discuss how an auditor helps in financial situations of a company.

  1. An auditor reduces your workload and burden a lot as he handles all the reviewing and examining the process of the financial state of the company.
  2. Being a professional, he can also guide and help you with different accounting sectors, like bookkeeping, accounting, etc.
  3. The process of analysing the accounting of the company also became fast as he is an expert in that field.
  4. The chance of making a mistake in this process is zero as he makes sure that the accounting and taxes in your company are handled responsibly.

All the above benefits indicate a reader towards the fact that hiring an approved auditor for any accounting process actually reduces the burden and also makes sure that the process is error-free. As JAFZA is an established business zone, the need to hire an approved auditor increases as they will help you to grow your business and make it profitable for you. The importance of an approved auditor in JAFZA has been discussed in the section below.

  1. They will analyse the financial state of the business and can advise you about the upcoming threats or profits in your company.
  2. They will rectify any mistake found in the accounting of your company while auditing it.
  3. The auditing process will take place from time to time, making sure that the chances of any misappropriation reduce to zero.
  4. As accounting is without any mistake and error, the goodwill in the markets also builds slowly and gradually.

Auditing is the work of experts and is a crucial factor for the financial state of a company, and therefore a company should make sure that the auditors hired by them are professional. Jaxa is a group of professional accountants who provide you with different accounting services and are also approved in JAFZA. Therefore if you need help with any accounting or auditing process, feel free to contact us.