Complete Guide to Audit Requirements in UAE 2025

UAE businesses must comply with various federal audit requirements depending on their legal structure, industry, and activities. The primary legislation governing audit requirements includes Federal Law No. 32 of 2021 on Commercial Companies.

All companies must maintain proper accounting records and have their financial statements audited by licensed auditors approved by the Ministry of Economy. The audit requirements vary based on company size, legal structure, and industry sector.

Key federal requirements include annual financial statement audits, maintenance of proper accounting records, compliance with International Financial Reporting Standards (IFRS), and timely filing of audited financial statements with relevant authorities. Failure to comply can result in significant penalties and business restrictions.

Different industries face unique audit requirements in the UAE. Real estate companies must comply with RERA regulations, including escrow account audits and service charge verification. Financial services firms follow DFSA or Central Bank guidelines, which include additional compliance and risk management requirements.

Understanding your industry-specific requirements is crucial for maintaining compliance and avoiding penalties. Each sector has specialized audit procedures, reporting formats, and compliance deadlines that must be carefully followed.

UAE businesses must follow International Financial Reporting Standards (IFRS) for financial reporting. The implementation of these standards requires careful attention to detail and regular updates to ensure compliance with the latest accounting requirements.

This section covers the key IFRS requirements and their practical implementation in the UAE context, including revenue recognition, lease accounting, financial instrument classification, and disclosure requirements specific to UAE business environment.