Every company requires an auditor to keep the company on the path to success. Proper accounting and auditing will allow a company the company to utilize all of its resources in a judicious way. It will also allow the company to control and curb any illegal or cost and labour intensive activity that is happening in the company. The process of conducting an audit will also help in bringing in more number of investors to the company and emboldening the confidence of the present investors.
The government has taken steps and has established various free zones which will allow the numerous companies to come to UAE and conduct business. These free zones help in the complete incorporation and registration process and will also provide various facilities and advantages which will ensure that the company will grow to the fullest. One such free zone is the Dubai Multi Commodities Centre (otherwise known as DMCC).
The establishment of the Dubai Multi Commodities Centre (DMCC) was a result of the various initiatives which were taken by the Government of Dubai. The main aim of DMCC is to provide all the necessary features, infrastructure and services that a growing business may require in the present or in the future. Establishing a company in the DMCC will also provide various business opportunities to the various companies as the free zone will help in accessing the markets in UAE as well as the markets in the adjacent GCC countries.
As of 2018, more than 15,000 companies have registered themselves with the Dubai Multi Commodities Centre and more registrations are expected. This free zone is the recipient of various accolades. It has been awarded the position of the number one global Free Zone for a consecutive fourth time by the FDi Financial Times Magazine. The various advantages of the DMCC are as follows:
- Strategic positioning of the Dubai Multi Commodities Centre
- No restrictions of currency
- Straight forward and simplified licensing procedures
- World Class infrastructure
- Complete capital and profit repatriation
- Secure business environment
- Exemption from Personal Income Tax and Corporate Tax
Need and Qualities of an Auditor in DMCC
Conducting an audit will definitely help improve the situation of the business. It is necessary for all the companies in the DMCC to appoint an auditor. The main work of the auditor will be to examine the financial reports of a company as prepared by the accountant and then report the findings to the management of the company. The auditor or the auditing firm must be approved by the DMCC and also needs to be registered in the free zone.
The selected auditor must ensure the proper upkeep of the accounting records of the company and also should make sure that the relevant rules and regulations are being complied to. In case of any discrepancy, it is the duty of the auditor to inform the upper management of the company.
The auditor has many powers which he can use for the betterment of the financial conditions of the company. These are:
- An auditor must have the right to obtain an access every information about the company. Such power of the auditor will allow them to provide better and concise picture of the financial condition of the business.
- If in any doubt regarding the Company accounts, an auditor can ask anybody to answer questions and can also ask for explanations regarding the relevant decision.
- It is also necessary for the auditor to be present at all the General Meetings and in these meetings the auditor can discuss the financial matters that concern the company in general.
Some of the attributes that are necessary for an auditor to possess in the DMCC are given below:
- The Qualifications of the Auditor/ Auditing Firm
- The Past Experience of the Auditor
- Compliance to the various Rules and Regulations
- The ability of an audit firm to understand the business and adapt accordingly
- The availability of Support from the company
The above attributes need to be present in an auditor. The above attributes will help a company to grow further and will allow a higher chance of success. If you are in need of performing a company audit, you should definitely familiarise yourself with the various services provided by JAXA Chartered Accountants. We are a DMCC approved auditing firm and will help your company to reach its maximum potential. For more details on the various services provided by us, please contact us, we will be glad to help you.