Statutory Audit
Achieve regulatory compliance with Statutory Audit services. We ensure accuracy, transparency, and adherence to legal requirements in financial reporting.
Ensuring Compliance and Financial Accuracy
A statutory audit is a legally required review of a company’s financial statements to ensure their accuracy and compliance with applicable laws and regulations. In the UAE, businesses are subject to various regulatory frameworks that mandate statutory audits, making it essential for companies to have their financial records thoroughly audited by independent, qualified professionals. At Stratify Consulting, we provide comprehensive statutory audit services designed to help businesses meet their legal obligations while enhancing financial transparency and credibility.
What is a Statutory Audit?
A statutory audit involves the examination of a company’s financial records by an external auditor to ensure that they accurately represent the financial position of the company and comply with local laws. The audit ensures that financial statements are free from material misstatement and are prepared in accordance with the International Financial Reporting Standards (IFRS) and other relevant regulatory requirements in the UAE
Our Statutory Audit Process
At Stratify Consulting, we follow a rigorous and transparent process to ensure that your statutory audit is conducted smoothly and efficiently
Pre-Audit Consultation
We begin with an initial consultation to understand your business operations, the scope of the audit, and any specific areas of concern. This helps us tailor our audit approach to your unique requirements
Planning and Risk Assessment
Our auditors perform a risk assessment to identify key areas that require attention. This allows us to focus on high-risk areas and ensure that our audit procedures are efficient and effective
Data Collection and Review
We gather financial records, including balance sheets, income statements, and cash flow statements. Our team thoroughly reviews these documents, ensuring that all financial transactions are accurately recorded
Internal Controls Evaluation
As part of the audit, we assess your internal controls to ensure they are effective in preventing errors or fraud. If we identify any weaknesses, we provide recommendations for improvement
Testing and Verification
Our auditors perform various tests on your financial data, including substantive testing and analytical procedures, to verify the accuracy and completeness of the financial statements
Audit Report
Once the audit is completed, we prepare a detailed audit report, outlining our findings and providing an opinion on the financial statements. This report is submitted to both the company and the relevant regulatory authorities
Post-Audit Support
After the audit, we offer support in addressing any queries or concerns raised by regulatory authorities or stakeholders. We also provide advice on improving financial reporting and internal controls
Documents Required for Statutory Audit
Financial Statements
Complete set of financial statements, including the balance sheet, income statement, and cash flow statement for the relevant financial year
General Ledger
A detailed record of all financial transactions, categorized by account, to verify entries and balances
Bank Statements
Statements from all bank accounts held by the company to reconcile and validate cash transactions
Invoices and Receipts
Sales and purchase invoices, receipts, and expense records to support recorded transactions
Tax Returns
Copies of VAT, corporate tax, or excise tax filings to ensure compliance with tax regulations
Agreements and Contracts
Relevant agreements such as leases, vendor contracts, and loan documents to confirm financial obligations and commitments.
Why is a Statutory Audit Important?
A statutory audit offers several benefits, including
Legal Compliance
Many jurisdictions, including the UAE, require companies to conduct statutory audits to comply with regulatory frameworks. This is particularly important for entities operating in free zones or those listed on stock exchanges.
Financial Transparency
A statutory audit provides stakeholders—such as shareholders, investors, and creditors—with an accurate representation of the company’s financial health, fostering transparency and trust
Risk Management
Regular audits can help identify financial irregularities, weaknesses in internal controls, or potential fraud, enabling businesses to address these issues before they escalate
Improved Decision-Making
Audited financial statements offer accurate insights into a company’s financial standing, helping management make informed decisions related to business strategy, expansion, or investment
Enhanced Credibility
A statutory audit enhances the credibility of a business, both in the eyes of regulatory bodies and potential investors, which can be crucial for raising capital or entering into partnerships
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Our Other Audit Services
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What is the purpose of a statutory audit?
A statutory audit ensures that a company’s financial statements are accurate, comply with local regulations, and provide a true and fair view of the company’s financial health. It is required by law for certain businesses
Who requires a statutory audit in the UAE?
All UAE-based public and private joint-stock companies, as well as businesses in certain free zones, are required by law to undergo a statutory audit. Additionally, companies listed on stock exchanges or those with significant stakeholders may also need statutory audits.
What documents are required for a statutory audit?
Key documents include financial statements (balance sheet, income statement, cash flow), general ledger, bank statements, tax filings, and any other records relevant to the financial transactions of the company.
How long does the statutory audit process take?
The duration of a statutory audit depends on the size and complexity of the business. For most small and medium-sized enterprises (SMEs), the process can take several weeks, while larger corporations may require a longer timeframe.
What happens if issues are identified during the audit?
If discrepancies or weaknesses are identified, we will provide detailed recommendations on how to resolve them. This may include adjusting financial records or improving internal controls to prevent future issues.
How often should a statutory audit be conducted?
Statutory audits are typically required on an annual basis, aligned with the company’s financial year-end. Some businesses may choose to conduct additional audits or reviews based on their specific needs
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Why Choose Stratify for Statutory Audits?
At Stratify Consulting, we pride ourselves on providing high-quality, reliable statutory audit services to businesses across the UAE. With a focus on compliance, accuracy, and transparency, our audits are designed to give you peace of mind and ensure that your financial statements meet all regulatory requirements.
Contact Stratify Consulting today to learn more about our Statutory Audit Services and how we can help your business stay compliant and financially sound
