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Audit Compliance Checklist
Complete guide for UAE businesses to ensure audit readiness. Our comprehensive checklist covers 13 essential areas from pre-audit preparation to post-audit follow-up.
13 Sections
150+ Checklist Items
UAE Focused
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Get the printable PDF version with all 13 sections and timeline templates
1. Pre-Audit Preparation
- Define audit scope (financial, VAT, statutory, internal, other)
- Confirm audit period (from–to dates)
- Appoint internal audit coordinator (single point of contact)
- Share auditor engagement letter internally
- Confirm key deadlines (trial balance submission, fieldwork dates, reporting dates)
- Lock prior periods in your accounting system
- Ensure accounting policies are documented and consistent with IFRS / local GAAP
- Reconcile all main balance sheet accounts
- Review prior year audit findings and confirm action taken
- Identify any major events in the year (M&A, new branches, major contracts, financing, litigation)
2. Core Financial Documents
- Trial balance (final, with comparatives)
- General ledger for the year
- Chart of accounts
- Monthly management accounts (P&L, balance sheet, cash flow)
- Bank statements for all accounts (full year)
- Bank reconciliations for each month
- Cash count reports (if applicable)
3. Revenue & Receivables
- Revenue recognition policy
- Customer contract samples (major customers)
- Sales invoices listing (full year)
- Credit notes listing
- Aged receivables report at year-end
- Reconciliation of subledger to general ledger
- Bad debt / provision calculations and supporting rationale
- Proof of significant revenue cut-off testing (around year-end)
4. Purchases, Expenses & Payables
- Supplier master list
- Purchase invoices listing (full year)
- Aged payables report at year-end
- Reconciliation of payables subledger to general ledger
- Expense approval policy and sample evidence
- Major supplier contracts and SLAs
- Prepaid expenses schedule and supporting invoices
5. Payroll & HR
- Employee master list (joined, left, active)
- Employment contracts for key staff
- Payroll reports for each month
- Proof of salary payments (bank transfers / WPS files)
- End-of-service benefit (gratuity) calculation and assumptions
- Leave records and provision calculation
- Bonus and commission schemes and approval evidence
6. VAT / Tax Compliance (UAE-focused)
- VAT registration certificate and TRN
- VAT returns for the audit period
- VAT payment receipts and FTA correspondence
- VAT reconciliations (sales vs VAT returns, purchases vs VAT returns)
- Evidence of VAT reviews on complex transactions
- Documentation for any VAT adjustments or voluntary disclosures
7. Fixed Assets & Depreciation
- Fixed asset register (with location, cost, date, useful life, depreciation)
- Capitalization policy
- Supporting invoices / contracts for additions and disposals
- Physical verification records (asset counts)
- Impairment assessments where relevant
8. Inventory (if applicable)
- Inventory listing at year-end by item and location
- Costing method documentation (FIFO, weighted average, etc.)
- Stock count instructions and results
- Reconciliation of physical counts to books
- Obsolete / slow-moving inventory analysis and provision
9. Banking, Loans & Equity
- Loan agreements and amendments
- Schedule of loans, repayments, interest, and covenants
- Evidence of covenant compliance checks
- Bank facility letters (overdrafts, guarantees, LCs)
- Shareholder register and share certificates
- Board resolutions for dividends, capital injections, changes in share capital
10. Legal, Contracts & Compliance
- Trade license(s) and renewal receipts
- Memorandum & Articles of Association / constitutional documents
- Commercial registry extract, chamber of commerce certificate
- Office lease agreements and amendments
- Major customer and supplier contracts
- Insurance policies (property, liability, professional indemnity, etc.)
- Litigation / claims list with legal correspondence and provisions
11. Systems, Controls & Access
- List of systems used (accounting, billing, ERP, HR, CRM)
- User access matrix for financial systems
- Evidence of regular backups and basic IT controls
- Segregation of duties documented for key processes
- Documented procedures for cash handling, approvals, vendor onboarding, and customer credit
12. Common Compliance Pitfalls (Self-Check)
- No unreconciled bank differences older than 30 days
- No suspense accounts or "temporary" accounts still open at year-end
- All related-party transactions identified, documented, and priced at arm's length
- All manual journal entries have clear explanations and approvals
- Revenue around year-end checked for premature recognition
- Cut-off for purchases and expenses reviewed around year-end
- All significant estimates (provisions, impairments, gratuity) have written support
- Prior year audit recommendations tracked and closed or justified
13. Timeline Planning Template (High-Level)
- T-4 weeks (before fieldwork): Finalize trial balance, Complete reconciliations, Compile core documents
- T-3 weeks: Provide requested schedules to auditors, Clarify complex transactions, Confirm system access
- T-2 weeks: Internal review of ledgers, provisions, and cut-offs, Resolve outstanding reconciling items
- T-1 week: Lock scope and timetable with auditors, Brief internal stakeholders
- During fieldwork: Respond to queries within agreed SLA, Track open items
- Post-fieldwork: Review draft management letter and financial statements, Agree adjustments, Record action plan
Audit Timeline Planning
T-4 Weeks
- • Finalize trial balance
- • Complete reconciliations
- • Compile core documents
T-3 Weeks
- • Provide schedules to auditors
- • Clarify complex transactions
- • Confirm system access
T-2 Weeks
- • Internal review
- • Spot-check ledgers
- • Resolve outstanding items
T-1 Week
- • Lock scope and timetable
- • Brief stakeholders
- • Prepare for fieldwork
During Fieldwork
- • Respond to queries promptly
- • Track open items
- • Maintain communication
Post-Fieldwork
- • Review draft reports
- • Agree adjustments
- • Record action plan
Why Use This Checklist?
Ensure Compliance
Cover all UAE regulatory requirements and avoid penalties
Save Time
Reduce audit preparation time with organized documentation
Reduce Risk
Identify and address potential issues before auditors do
Cost Effective
Minimize audit fees by being well-prepared and organized
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