05
May 2020
The importance and benefits of DMCC free zone are known to almost everyone. DMCC provides various facilities and other advantages which make setting up a company in this zone a very lucrative and profitable option. One of the largest and the fastest-growing free region in the world is the Dubai Multi Commodities Centre, also known as DMCC. Let us gather more information about this free zone and why you will require DMCC Approved Auditors when conducting an audit of an incorporated company in the free zone.
Dubai Multi Commodities Centre (DMCC)
The Dubai Multi Commodities Centre (DMCC) was a result of the initiative taken by the Dubai Government. The establishment of this free zone was mainly done for trading international commodities. The strategic location of the free zone with access to the world's most important trade routes, The DMCC has gradually become the world's fastest-growing Free zone. This free zone facilitates and regulates the trading of a large variety of goods ranging from precious metals, industrial raw materials, food, etc. and also provides various services such as logistics, communication, transportation, etc.
In the current scenario, the free zone has its dealings with about 15,000 companies by providing various world-class services and state of the art infrastructures. The DMCC will ensure that the companies registered in the free zone will not only have access to various business opportunities in the UAE but will also allow the companies to spread influence to the adjacent Gulf Cooperation Council (GCC) Countries. Spread across 200 hectares, this free zone consists of 68 towers and comprises nearly 180,000 square meters of commercial, retail, and residential space.
The Almas Tower is considered as the headquarters of DMCC, which was completed in the year 2008, is the 31st tallest structure in the world consisting of more than 1,000 diamond companies, diamond vaults, a separate diamond trading floor and the Almas Conference Centre (ACC). The plans of DMCC include increasing the commercial and residential space in the free zone and opening more retail and F&B outlets. This will be done alongside the establishment of 3,000 more residence spaces, a central plaza for entertainment and several luxury hotels.
Role of a DMCC Approved Auditor?
An auditor approved by the DMCC should comply with the rules and regulations as set by the management of the DMCC. The auditor also has to present the audit report of a company, and in accordance with Section 11 of the Company Regulations, it should be duly signed and stamped by the board of directors.
The primary role of the approved auditor is to ensure that the annual financial accounts prepared by a company do not consist of any misstatement or any wrong financial data. The auditor will also take care that all the reports are arranged according to the International Financial Reporting Standard (IFRS). The duties and powers of a DMCC auditor are given below:
A DMCC Company's auditor must carry out such investigations as will enable the auditor to form an opinion as to the following matters:
- whether the proper accounting records have been maintained by the Company;
- whether proper returns adequate for the audit have been received from offices not visited by the auditor;
- whether the Company's accounts are in agreement with the accounting records returns; and
- whether the accounts of the Company have been prepared and maintained in compliance with International Financial Reporting Standards (IFRS).
If it is the opinion of the auditor that the above conditions have not been satisfied, the auditor must provide that fact in the report. The auditor has a right of access, at all reasonable times, to the Company's records. The auditor is entitled to require from the Company's Officers such information and explanations as the auditor deems necessary for the performance of the duties of the auditor. Every auditor is entitled to receive notice of, and attend, any meeting of Shareholders and to be heard on any part of the business of the meeting which concerns the auditor.
If the auditor is not able to obtain all the explanations and required information which, to the best of the auditor's knowledge and belief are necessary for the purposes of the audit then the auditor must state that fact in the report.
The reasons, as mentioned above, make it necessary to hire a reputed and cost-effective DMCC approved auditor.
The Monitoring and Review of the Auditors
The management of DMCC takes steps to monitor the approved auditors and review their work by periodically checking the data and the response of the auditors. An audit firm must at all times comply with the Dubai Multi Commodities Centre Authority (DMCCA) which includes going to all the meetings held and providing all necessary documents and other valid information when requested by the DMCCA.
In case the DMCCA finds any problem in auditing in these approved auditors, it has the right to suspend or remove the approved auditor from the approved auditor list.
If you are looking for a such reputed and approved accounting and audit firm which will handle all the audit requirements of your company, you should look into the services provided by JAXA Chartered Accountants. Our experts will take care of all the elements of your company in the free zone. JAXA also provides services in the Mainland and can assist in the Company Incorporation process. To know all about all the services provided by JAXA do contact us, we will be happy to help.