05
May 2020
One of the most attractive factors for a businessman to set up their business in a different location is if a particular set of conditions will be available to its business. All such factors, whether it is a suitable location, proximity to raw materials and market, cheap and knowledgeable labour or any other, are available at a Free Zone. One such Free Zone is the Dubai Multi Commodities Centre (DMCC)
The importance and benefits of DMCC free zone are known to almost everyone. DMCC provides various facilities and other lucrative advantages which make setting up a company in this zone a very lucrative and profitable option. With the passage of time, DMCC is now considered one of the largest and fastest-growing free regions in the world.
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) came into existence due to the initiative taken by the Dubai Government. The establishment of this free zone was mainly done for the purpose of providing business opportunities in the field of trading international commodities. With 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. The Free Zone also provides various services such as logistics, communication, transportation, etc. to the business which makes conducting the business easier.
At present, the Free Zone is dealing with around 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.
Why choose a DMCC Approved Auditor?
According to the rules and regulations, only an approved auditor can conduct the financial audit of a company in the free zone. This automatically provides an edge to the Approved auditor. Apart from this, the chosen approved auditor must comply with the rules and regulations as set by the management of the DMCC and present the audit report of the company, and in accordance with Section 11 of the Company Regulations, it should be duly signed and stamped by the board of directors of the company.
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:
- Proper accounting records have been maintained by the Company;
- Proper Returns adequate for the audit have been received from offices not visited by the auditor;
- If the Company's accounts are in agreement with the accounting records returns; and
- If 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 the proof in the report.
The auditor has a right to access any and all the Company's records at the time of requirement. The auditor is entitled to request such information from the Company's Officers such information which can provide assistance in the conducting of the audit. The concerned offices being asked of the information must also provide the relevant explanations of the tasks if it is required by the auditor to further expound on the tasks being performed in the business.
So that the approved auditor faces no problem while working, the auditor is entitled to attend all the shareholder meetings and has access to all the necessary information of the company which the auditor deems fit. In case the auditor is unable to get the necessary facts in order then he should mention such instances in his report.
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 reputed and approved accounting and audit firm in the Free Zone 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.