Setting up a business in Dubai is one of the most useful things that a businessperson can do. There are several free zones available in Dubai which allows entrepreneurs and people in business from all over the world to set up a business. One such free zone which is of great importance is the DMCC or Dubai Multi Commodities Centre Free Zone.
In Dubai Multi Commodities Centre (DMCC), a company needs to audit itself annually, but this audit cannot be performed by any auditing and accounting firm. The auditing firm needs to be approved by the Dubai Multi Commodities Centre Authority (DMCCA). Along with this, the auditor should also follow certain principles which will ensure that the auditor is capable of handling the data of the company and will try to obtain the best result possible.
There are six principles which are to be followed by a DMCC approved auditor which are:
The meaning of the word integrity is to follow the laws of ethics and having a strong sense of honesty and morality. During an audit, the auditor will face scenarios in which doctoring the reports or tweaking the financial numbers will result in the benefit of an individual entity or of the company. an auditor with a sense of integrity will always choose what is right instead of what will be more profitable.
If the auditor does not decide with integrity, in the long run, this decision may come out in the open, and the people will pull out their trust from the company which will ultimately lead to the liquidation of the company in the DMCC.
This means that an auditor must conduct an audit of the company with no objective and should be aloof of the result. It should be taken care that the auditing company should have no stake in the company or should not be related to the company being audited in any way.
Being objective means to be unbiased to the company and making no compromises on the quality of the result.
In this world, privacy plays a crucial role in the growth of a company. If a company has good relations with the people and can be trusted, more and more people will prefer that company. All the auditors must keep all the data confidential.
The companies which will be audited will give out their financial and confidential details to the auditing companies which it reaches the wrong hands will result in considerable losses to the company. Thus, an auditing company which can keep matters private and will be able to work discreetly is preferred.
This is a fundamental characteristic which an auditor should have. Even after having objectivity, integrity, and the other qualities if the auditor does not possess the skills to handle all the financial and confidential data of a company, then the auditor is of no use. With a varying skillset, the auditor can provide services according to the needs and requirements of the company.
Professionalism plays a significant part of an auditor’s career. No company will like to have itself audited by an auditor who does not give the feeling of being a professional. Being a professional auditor gives a sense of confidence to the current and potential clients, which makes them very forthcoming with the data required. The companies will provide all the data which is required by the auditor without any question.
6. Co-operating with the DMCCA
The Dubai Multi Commodities Centre Authority (DMCCA) is the central authority which handles the complete working of the free zone. An auditor should comply with all the rules and regulations set by the DMCCA and only then will the authority provide its seal of approval. Without the seal of support from the DMCCA, an auditing firm cannot audit the companies in the free zone.
These are the six principles which should be followed by an auditor, whether an individual or a financial firm. Having the above six principles will add character to the auditor and will make them more trustable to the clients so that they can share complete information of a company.
Auditing is significant for a company. It not only helps us to understand the present in a better way but also allows us to predict the future to a certain degree. This is why it is always recommended that you take the assistance of a reputed and approved auditing firm in UAE. If you are looking for such services, do have a look at the services provided by JAXA Chartered Accountants. For more details on the services offered, contact us. We’ll be happy to help.