audit services

External Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions.

The purpose of an audit is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organization at a given date. There are various types of external audits, each conducted to provide assurance to the investors, detect any errors and frauds, check accounting policies and verify accounts and statements.

The different types of External Audit include:

Financial Audit: A financial audit is an opinion engagement – performed independently by an audit professional – who is acting with due diligence, working in line with the professional standards, and preparing an audit report for the consumption of investors and management, to aid in decision-making, leading to business growth.

Compliance Audit: A compliance audit is one conducted in many large-scale enterprises for data privacy and critical infrastructure protection. A compliance audit ensures that the established rules and procedures are followed to ensure the above.

Operational Audit: An operational audit is nothing but a thorough check on the processes being followed within an organization. The objective for this is clear – where can there be process improvements to minimize risk and maximize growth within the company? Through an operational audit, an audit develops recommendations for improvement, thereby simplifying methods being followed. Simultaneously, auditing services in DAFZA also include statutory audits, which are performed keeping in mind the requirements of the free zone.

The goal for all external audits is simple – to ensure that every organization adheres to managerial procedures and requirements, and to provide an opinion on the organization’s financial statements.

Is your business looking for external audit services in UAE? Check out TRC Pamco, a leading auditing company in UAE to help you conduct effective and efficient external audit services.

Internal Audit – a must for every organization for various reasons. An internal financial audit gives you an overview as to where your organization stands in terms of quality and compliance, and it also proves to be an investigative exercise to understand the scope of opportunities within the organization. An Internal Audit helps the management to steer the organization most swiftly towards its goals. To ensure effective financial audit services, below are some of the best practices that every organization can follow:

• Communication is key. Communicate your requirements to your auditor before commencing the audit to pave the way for a smooth audit. Through communication – you can understand the best model which needs to be used for your audit.
• To ensure a cost-effective audit – focus on the factors that directly impact the internal audit process. This will help you save time and money, as you would have streamlined the entire audit process. Once the scope is reduced, the auditors can focus on the problem areas to give you effective results.
• A risk management strategy is a must, and this must be applied across workflows. This will help identify the core problem areas and improve the scope of an internal audit. Once the most susceptible assets are identified – and a strategy to better them can be formed and addressed effectively.
• An auditor must maintain independence through the audit, to be objective around their findings. It’s not about facts or faults when you opt for an internal financial audit – but its about verifying compliance.
• To ensure an effective and efficient audit, timelines should be maintained. By allocating proper time to each task of the audit process – the desired timeline can be met, keeping the auditor and his stakeholders in sync with the entire process.

Being a key component for every management system, an Internal Audit gives an overview of the processes within their system and their effectiveness – adding value to any organization. If you’re looking for financial audit services in the UAE, reach out to TRC Pamco – best financial audit companies in Dubai , a firm with over 17 years of experience in conducting independent audits.

Data, Records, Reports, and Analytics of your assets and liabilities or debts are key factors for any business – and to derive this data – accounting and auditing is a core function of any organization. It is through the process of accounting that companies record and report the intricate pieces of financial data – which allows the management as well as investors to understand the financial health of their business and make informed decisions.

Similarly, an audit is important to assess the economic and transactional activities of an organization. An audit is an independent view of the financial statements, thereby increasing user confidence in the financial statements, and reducing the risk element within an organization. It also ensures your organization is following the rules and regulations.

What are the benefits of accounting & auditing? Read on to find out!

• You get access to detailed statistical information about the company, leading to greater transparency within the management and investors, increasing confidence and efficiency.
• It helps align the resources within your organization, and their time is managed properly, it leads to a more profitable company
• When you accumulate the financial information following the accounting standards – it ensures you can perform auditing, taxation, and more.
• Accounting includes the ascertainment of interpretation and analysis of accounts and statements, an accounting system, and formulation of financial principles and helps the management conduct financial planning effectively.

It is this information that the investors and analysts use to make important decisions around the valuation and creditworthiness of an organization, without this, they would have a lesser understanding of historical data, current data, and future projections. There are various Chartered Accountant firms in UAE that provide accounting and auditing services and can take your worries away!
To know more, reach out to TRC Pamco, one of the leading accounting firms in Abu Dhabi – and watch performance improvements, given their experience and expertise, thereby concentrating on higher-level decision making.

With a global pandemic upon us, organizations were faced with unprecedented uncertainty, and with a need to inculcate a rapid pace of change. While organizations were seeing this change – auditors were learning and implementing the changes to ensure efficient growth of the organization.

Let’s go through some of the trends and challenges that the audit firms in UAE might witness in 2022:

• Audit Strategies will have to be changed, to ensure they seem relevant and useful. In the last 2 years, it was all about building resilience within the organizations. In 2022, it will be all about ensuring visible impact in the audit services – by taking on a dynamic approach to auditing – the focus will be on bringing short and collaborative resolutions. Therefore, internal audit firms in Dubai will look at building audit strategies that show the impact of audit and the value it can provide to any organization.

• The focus in 2022 will be more on ensuring compliance with regulations and procedures. While auditors will investigate the past and reflect on the present – it will be more about out-of-the-box thinking, with emphasis on the future, and implementing the changes and approaches in business.

• As newer risks emerge, 2022 will be all about efficiently managing the rapid and dramatic changes in the business lifecycle. Internal Audit Firms in Dubai will have to plan and account for unaccounted risks, and the way to manage these risks, that are going to arrive through the year.

• Risk Management Frameworks to outline the risks, scope, criteria will have to be managed. Characterizing risk standards & models going ahead will require a more engaged and cooperative methodology. In the previous year, associations have connected with general medical care trained professionals and doctors to obviously comprehend wellbeing chances. The pandemic uncovered a few regions wherein associations need better cooperation, for example, understanding supply chains, strategic relations, and, as a rule, the effect of efficient failures of various enterprises, just as accessing various specialists in a wide scope of industries.

Are you ready to embrace the change? To know more about how audit firms in the UAE can assist you, reach out to TRC Pamco, one of the leading and experienced audit and consulting firms in the UAE.

Accounting and bookkeeping are at the core of any business, and having the right partners is very essential to the growth of your business. But first, let us understand our outsourcing bookkeeping and accounting and benefit your business.

Outsourcing the right bookkeeping services in UAE helps you avoid the payroll and visa costs for an in-house employee. You get access to valuable expertise, and a team that continues working even if a single employee decides to leave. Additionally, it also saves on the training and management overheads.

Once we have understood the benefits, how do you know a partner is right? Read on!

• Team and Expertise

First and foremost, research a little about the team, their strengths. Given the transition of the economy into new tax structures and changes, it is best to have a firm that is hands on and has the right people in their team.

• Availability and Support

Sync the audit team with your work structure. Do they fit in? Are they available when you need them? You must have a team that is in sync with your business, helping it grow. This will enable quick decision making, and your business can look out for better growth opportunities.

• Amount & Structure of Fees

Most firms have different fee structures, and this must be confirmed right at the start. Given the volume of work, you must assess your accounting needs before finalizing your outsourced accounting partners.

• Goals

Are the firm’s goals aligned to yours? Accounting firms should be able to help you set business goals, and then show you the path required to leverage on the business profits. This is especially important in a dynamic environment.

To know more about some of the best audit firms in Dubai, check out TRC Pamco, your reliable bookkeeping and accounting partners of all times. They are a team of experienced professionals, and can help you with end-to-end accounting solutions, helping your business grow and shine.

Are your company’s financial statements accurate and fair? How do you find out?

Well, a statutory audit is one that helps define a fair and accurate representation of your financial position. It is determined by looking at bank balances, bookkeeping records, financial transactions, and more. A statutory audit is a legally required document, and hence it is important to conduct a statutory audit in UAE.

There are various associations and people that might be dependent upon legal reviews. This is especially significant for public organizations, albeit some privately owned businesses will likewise be dependent upon legal reviews. There are various prerequisites dependent on an organization’s pay level, while there might be additional requesting necessities for organizations that arrangement with customer reserves, for example, specialists or organizations managing annuities.

To perform a statutory audit successfully, first and foremost – share the complete information with your audit team. This will cover a lot of the underlying documentation needed by the review group. Ordering this data forthright will empower the group to ‘get down to business during the booked review hands-on work and help to decrease the time spent by you examining data during this time. Furnishing the review group with a rundown of key people/contacts to whom certain inquiries ought to be coordinated, just as subtleties of their accessibility during the review will likewise be of help.

As companies continue to manage the aftermath of COVID-19, the management should consider the effect on the fiscal reports from a monetary and divulgence viewpoint.

During the statutory audit process, auditors ensure the financial statements are error-free and comply with all the regulatory standards. They also perform tests on balances and accounts to ensure a true and fair representation of a company’s financial statements.

Are you looking for statutory audit services in Dubai? Reach out to the team of experts at TRC Pamco, one of the top audit firms in Dubai, and they can help you out!

Introduction

FTA recently issued a clarification to provide clarity on the time-period within which input tax should be recovered by a taxable person. This Clarification clarifies the FTA’s position relating to the interpretation of Article 55 of the VAT Law and discusses the time-period within which the input tax must be recovered. This clarification also discusses the recourse available to taxable persons in the instance where input tax is not recovered within the prescribed time-period.

Detailed Discussion

UAE VAT Law defines the time period within which the company can recover its input tax, which is the first tax period in which two conditions are satisfied;

• The tax invoice is received and
• An intention to make the payment of consideration of the supply before the expiration of six months after the agreed date of payment is formed.

Hence, the taxable person can claim Input Tax in the period where both above mentioned conditions are satisfied.

As per Article 55(1) of UAE VAT Law, one of the conditions is that the taxable person pays the consideration for the supply or any part thereof, the interpretation of which is the intention to make the payment before the expiration of six months after the agreed date of payment for the supply.

A taxable person may receive a tax invoice but may not have an intention to make the payment until the internal approval process for the invoice is completed. In such cases, the conditions of Article 55(1) of the VAT Law are not satisfied as the intention to make the payment before the expiration of six months after the agreed date of payment is not formed.

The FTA considers that the conditions of Article 55(1) of the VAT Law will only be met when the taxable person completes the internal approval process and forms an intention to make the payment within the prescribed period

Keeping the law and the above clarification in mind, the taxable person needs to evaluate both the conditions together and to make sure that the intention to pay is formed within the prescribed period.

To conclude

• When a tax invoice is received in one tax period and the intention to make the payment is formed in a later tax period, the input tax can only be recovered in such later tax period.
• Where the input tax is not recovered in the tax period in which both the conditions are satisfied, the taxable person can recover the input tax in the immediate next tax period.
• Input tax is not recovered in the first two tax periods, a taxable person is required to submit a voluntary disclosure for any of such periods.
• Where a taxable person fails to make the payment of consideration before the expiration of six months after the agreed date of payment, the taxable person should reduce the input tax in the VAT Return of the tax period following the expiry of the six-month period. However, once the payment is made, the taxable person will again be entitled to recover the input tax

Transfer Pricing Documentation and Country-by-Country Reporting (“CbCR”)

Introduction

The United Arab Emirates (“UAE”) joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) on 16 May 2018, bringing the total number of participating jurisdictions to 116.

By joining the Inclusive Framework, the UAE has committed to implement the following four BEPS minimum standards:

• Action 5: Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance;
• Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances;
• Action 13: Transfer Pricing Documentation and Country-by-Country Reporting (“CbCR”);
• Action 14: Making Dispute Resolution Mechanisms More Effective

Action 13: Transfer Pricing Documentation and Country-by-Country Reporting (“CbCR”)

Action 13 is relevant to multinational groups headquartered in the Middle East, since the requirement to prepare a group Master file, Local files and a CbCR may exist due to operational presence in other jurisdictions that have adopted Action 13.

• Master File: A report which provides a high-level overview of the multinational enterprises (“MNEs”) group business i.e. global business operations, transfer pricing policies, and its global allocation of income and economic activities.
• Country-by-country report (CbCR): A report which provides aggregate tax jurisdiction, wide information relating to the global allocation of income, taxes paid, and certain indicators of economic activity in which the MNE operate. Further, this report will include list of all entities, branches and Permanent Establishments (PE’s) as well as assumptions and narrative to support and explain the data.
• Local File: A report which provides detailed information relating to specific intra-group transactions and assures the tax authority that the local entity has complied with the arm’s length principle for its material intra-group transactions.

Applicability:

Action 13 will be applicable on multinational enterprises (“MNEs”) with annual consolidated revenues of AED 3.15 billion or higher (750 million EUR / 800 million USD).

Action points for UAE-based entity of MNE Group:

• UAE-based entity of an MNE group should notify the UAE Ministry of Finance of their intent to satisfy to the CbCR filing requirements. If multiple entities of the group are UAE-based, each entity is required to notify.
• The CbCR should be electronically filed within 12 months after the last day of FY 2019.

Applicable Penalties:

• For the failure
• To report the information required to be reported under the Resolution
• To notify the MoF, on or before the required reporting date, of the intention to file a report in respect of a certain accounting period;
• Penalty: Up to AED 1,250,000 (AED 1M + AED 10K for every day during which the failure continues (maximum of AED 250K))
• For the failure to report the information in a complete and accurate manner;

Penalty: Up to AED 500,000 (from AED 50,000 to AED 500,000)

• For the failure to provide the MoF with any information requested in accordance with the Resolution and for the failure to retain documentation and information required to be collected with regards to the Resolution for minimum five years from the date of reporting to the MoF.

Penalty: AED 100,000