Everything you need to know
Frequently Asked Questions
Our FAQs provide a starting point for businesses operating across the UAE mainland, DIFC, ADGM and other free zones. Because requirements can differ depending on your entity type, licence, activity, size, regulatory status and tax position, we recommend speaking to our team before making any filing or governance decisions
About RAA
Who we are, what we do and how we work with clients across the UAE.
What does RAA Auditing do?
RAA provides independent audit and assurance services, alongside practical support in accounting, finance, tax, regulatory compliance and HR advisory through its wider ecosystem and strategic partners. Our role is to help clients meet statutory and regulatory obligations, improve financial reporting quality and build confidence with shareholders, lenders, investors and regulators.
Which jurisdictions does RAA support in the UAE?
RAA supports businesses across the UAE mainland and key free zone environments. RAA is registered in Abu Dhabi Global Market (ADGM), Dubai International Financial Centre (DIFC), Dubai Airport Free Zone (DAFZ) and Dubai Mainland. The exact scope of work depends on the entity’s jurisdiction, regulatory status and filing requirements.
What types of clients does RAA work with?
RAA works with owner-managed businesses, family offices, holding companies, real estate SPVs, trading and distribution businesses, professional services firms, hospitality groups, aviation-related entities, non-profit organisations and other UAE businesses requiring audit or assurance support.
How is RAA different from a larger audit firm?
RAA combines technical audit discipline with a practical, partner-led approach. As a team which has been trained and experienced in the larger audit firms, we bring the best of all and focus on responsive communication, proportionate audit delivery and clear reporting. Our clients receive direct access to experienced professionals while still benefiting from structured methodology, regulatory awareness and a strong quality mindset
Can RAA support clients beyond the annual audit?
Yes. Where independence and professional standards allow, RAA can help clients identify reporting gaps, strengthen controls, prepare for audits, improve finance processes and connect with appropriate specialists for structuring, tax, regulatory, compliance and HR matters.
External Audit & Assurance
Audit purpose, process, deliverables, timing, audit readiness and supporting documents.
What is an external audit?
An external audit is an independent examination of a company’s financial statements. The auditor obtains evidence, assesses significant risks and provides an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.
Why is an audit important?
An audit is more than a compliance requirement. It helps improve confidence in financial information, supports licence renewals and regulatory filings, assists with bank and investor discussions, and can highlight weaknesses in reporting processes or internal controls that management should address.
Which standards are applied during an audit?
Audits are generally performed in accordance with International Standards on Auditing (ISAs), together with applicable UAE laws, free zone rules, regulatory requirements and the relevant financial reporting framework, typically IFRS or IFRS for SMEs where permitted and appropriate.
What is IFRS and why does it matter?
IFRS refers to International Financial Reporting Standards. These standards provide a consistent basis for preparing financial statements, helping users compare financial performance and position across companies, industries and jurisdictions. The applicable framework should be confirmed based on the entity’s legal and reporting requirements.
What does the audit process usually involve?
A typical audit includes engagement acceptance, planning, risk assessment, understanding the business and controls, testing material balances and transactions, evaluating estimates and disclosures, discussing findings with management, obtaining written representations and issuing the audit report.
How long does an audit take?
The timeline depends on the size and complexity of the business, the quality of accounting records, availability of supporting documents, whether group reporting is required and how quickly management responds to queries. A well-prepared audit can often be completed more efficiently and with fewer disruptions.
What documents are usually required for an audit?
Common requirements include the trial balance, general ledger, bank statements and confirmations, invoices, contracts, payroll records, fixed asset registers, inventory records, lease agreements, loan agreements, related-party details, board minutes, tax filings and management’s assessment of key accounting estimates.
What if our accounting records are not audit-ready?
RAA can help identify the gaps preventing an efficient audit. This may include missing reconciliations, incomplete supporting documents, unclear cut-off, unsupported balances, outdated accounting policies or unresolved prior-period matters. Any support must be structured carefully to preserve audit independence.
Can an audit be performed remotely?
Many audit procedures can be performed remotely where records are complete and accessible electronically. However, some procedures may require meetings, physical verification, site visits or access to original documents depending on the nature of the business and the risks identified.
Will RAA provide a management letter?
RAA issues a management letter with control observations, audit findings and practical recommendations to management or those charged with governance, at the end of every audit.
What is audit readiness support?
Audit readiness support helps management prepare for audit before fieldwork begins. This may involve reviewing account reconciliations, identifying missing schedules, improving documentation, addressing technical accounting issues and agreeing a practical audit timetable. It can reduce delays and improve the quality of audit evidence.
UAE Audit Requirements
General questions on mainland, free zone, ADGM, DIFC and SPV audit considerations.
Is an audit mandatory for UAE companies?
Audit requirements depend on the entity’s legal form, jurisdiction, free zone, licence, regulatory status and tax classification. UAE companies are generally expected to maintain proper accounting records, and many entities are required to appoint an auditor and prepare audited financial statements. The exact requirement should be confirmed for each entity.
What accounting records should a UAE company keep?
Companies should maintain accounting records that show transactions clearly, support balances in the financial statements and allow shareholders, management, auditors and authorities to understand the company’s financial position. Records should include source documents, ledgers, reconciliations, contracts and tax-related documentation.
How long should accounting records be retained?
Record-retention periods vary by law and jurisdiction. Under the UAE Commercial Companies Law, companies must keep accounting records for at least five years from the end of the financial year. ADGM entities are generally required to keep adequate accounting records for a minimum of ten years. Tax and regulatory obligations may impose additional requirements.
Do free zone companies need audited financial statements?
Q20. Do free zone companies need audited financial statements?
Many UAE free zones require audited financial statements for licence renewal, annual filing, tax purposes or regulatory compliance. Requirements vary by free zone and legal form, so management should confirm the rules applicable to its specific licence and authority.
Do ADGM companies need an audit?
ADGM companies have a duty to prepare accounts and may be subject to statutory audit unless an exemption is available and properly claimed. Directors should assess the entity’s size, group position, activity, regulatory status, constitutional documents and any member or stakeholder requirements before relying on an exemption.
Do DIFC entities need a registered auditor?
DIFC and DFSA requirements depend on the entity type and whether the entity is regulated. Certain DFSA-regulated entities must appoint a DFSA Registered Auditor. Non-regulated DIFC entities should assess the applicable DIFC Registrar, Companies Law, licence and filing requirements before concluding on audit obligations.
Does a holding company or SPV need an audit?
A holding company or SPV may still need audited accounts depending on its jurisdiction, size, group structure, ownership, financing arrangements, free zone requirements, regulatory status, tax position and constitutional documents. SPVs with subsidiaries should also consider consolidation and group audit implications.
Can an audit help with bank, investor or shareholder requirements?
Yes. Audited financial statements can support bank financing, investor due diligence, shareholder reporting, acquisition discussions and governance reviews. They provide an independent view of financial information and can help stakeholders assess financial performance, solvency and controls.
What is a special purpose audit or agreed-upon procedures engagement?
A special purpose audit or agreed-upon procedures engagement is designed for a specific reporting need, transaction, regulator, lender or stakeholder. The scope is usually narrower or more targeted than a statutory audit and should be agreed clearly before work begins.
Accounting, Tax & Reporting
Financial records, IFRS, management reporting, Corporate Tax, VAT and audit-readiness support.
Can RAA help with accounting and financial reporting?
Yes. RAA can support clients with accounting and financial reporting matters, including audit readiness, management reporting, IFRS considerations, reconciliation discipline and finance-function improvements. Where the client is also an audit client, services must be evaluated for independence before acceptance.
Can RAA help with Corporate Tax and VAT?
RAA and its wider network can help clients understand Corporate Tax and VAT compliance requirements, prepare for filings and identify areas requiring specialist tax input. The exact scope should be agreed based on the client’s circumstances and any audit independence restrictions.
How does an audit support tax compliance?
A well-conducted audit can improve the reliability of financial information used for tax computations. It may also help identify incomplete reconciliations, unsupported expenses, related-party balances, revenue cut-off issues and accounting estimates that could affect tax reporting. Tax advice should still be obtained separately where required.
How often should management accounts be prepared?
Most businesses benefit from monthly or quarterly management accounts. Regular reporting helps management monitor cash flow, margins, receivables, liabilities and profitability, and it usually makes the year-end audit process more efficient.
What are common year-end issues that delay audits?
Common delays include unreconciled bank accounts, incomplete receivables or payables listings, unsupported accruals, missing inventory records, unclear related-party balances, incomplete fixed asset registers, unresolved tax balances and lack of documentation for significant estimates or judgements.
Can RAA assist with IFRS technical accounting matters?
RAA can help clients consider accounting matters such as revenue recognition, leases, financial instruments, impairment, provisions, consolidation and related-party disclosures. For audit clients, any technical support must be scoped carefully so management remains responsible for accounting judgements and financial statements.
Internal Audit, Risk & Controls
Internal audit, control reviews, governance, AML/compliance touchpoints and process improvement.
What is internal audit?
Internal audit is an independent review of governance, risk management and internal controls. It helps management and boards assess whether processes are working effectively, risks are being managed and controls are designed and operating as intended.
What is the difference between internal audit and external audit?
External audit focuses on providing an independent opinion on financial statements. Internal audit focuses on the effectiveness of systems, processes, controls, governance and risk management. Both are valuable, but they have different objectives, reporting lines and deliverables.
When should a company consider internal audit support?
Internal audit support is useful when a business is growing, entering new markets, facing regulatory expectations, experiencing control breakdowns, managing fraud risk, preparing for financing, integrating acquisitions or seeking better oversight of key processes.
Can RAA review our internal controls?
Yes. RAA can perform targeted control reviews over areas such as revenue, procurement, inventory, payroll, bank payments, expenses, financial close, related-party transactions and compliance processes. The scope should be tailored to the risks and priorities of the business.
Can RAA help with AML or regulatory compliance reviews?
Where appropriate, RAA and its strategic partners can support clients with regulatory and compliance reviews, including governance, policies, procedures, training and internal audit work. The scope should be tailored to the client’s licence, sector, regulator and risk profile.
Can RAA provide outsourced finance officer or finance-function support?
Through its broader service model and strategic partners, RAA can help clients access outsourced finance and support services. Where the client is also an audit client, the scope must be assessed against independence rules and any applicable regulatory restrictions before work is accepted.
Working With RAA
How to request a proposal, what affects audit fees, confidentiality and next steps.
When should we appoint an auditor?
It is best to appoint an auditor early, ideally before year-end or shortly after the financial year closes. Early appointment allows time to plan the audit, agree deliverables, review documentation needs and identify potential reporting issues before filing deadlines become urgent.
How can we request an audit proposal from RAA?
You can contact RAA with your entity name, jurisdiction, licence type, financial year-end, business activity, turnover, number of entities, regulatory status and any filing deadline. RAA may request recent financial statements or trial balances to prepare an appropriate scope and fee estimate.
What affects the audit fee?
Audit fees depend on factors such as entity size, complexity, number of bank accounts, transaction volume, group structure, regulatory status, accounting quality, availability of records, number of locations, inventory requirements, related-party activity and whether prior-year issues remain unresolved.
Can RAA take over from our current auditor?
Yes, subject to professional acceptance procedures. RAA will consider independence, competence, risk, management integrity, outstanding fees or disputes, professional clearance and access to prior-year information where appropriate before accepting the engagement.
How does RAA protect confidential information?
RAA treats client information with strict confidentiality and uses it only for agreed professional purposes, unless disclosure is required by law, regulation or professional standards. Clients should avoid sending unnecessary sensitive personal data and should use secure channels for confidential information.
Who will manage our audit engagement?
RAA’s engagements are managed by experienced audit professionals with appropriate partner oversight. The team structure depends on the size, risk profile and complexity of the engagement, ensuring that the work is planned, reviewed and delivered to the required professional standard.
What happens after the audit report is issued?
After the audit report is issued, management may use the audited financial statements for filing, shareholder reporting, bank submissions, investor discussions or internal governance. RAA may also discuss key audit findings and improvement areas with management or those charged with governance.
What should we prepare before speaking to RAA?
Useful information includes the entity name, jurisdiction, licence, ownership structure, financial year-end, deadline, latest trial balance or financial statements, number of bank accounts, key activities, major contracts, prior auditor details and any known accounting or compliance issues.