An external audit is an independent examination of the financial statements prepared by the organization. It is typically conducted for statutory purposes because it is necessitated by the legal system or statutory provisions.

An external audit is conducted by an independent auditor examining, analyzing, and certifying the accuracy of the financial statements prepared by the company. It is binding by law on all companies registered under the UAE Commercial Companies Law, to be audited annually. Further, even some Free Zone authorities have made it mandatory to submit the audit reports.

The purpose of a statutory audit is to determine whether an organization provides a fair and accurate representation of its financial position & if funds were handled properly by examining information such as bank balances, bookkeeping records, and financial transactions. The shareholders of a company can choose any registered statutory auditors or audit firms in UAE in general meeting. Companies in the UAE are required to complete their audits in accordance with international financial reporting standards. We can advise you on what is the best reporting to meet your financial needs.

An external auditor must be professionally qualified and specialized in the field of Auditing. An external auditor can also be appointed by the government to go through and conduct an examination of the financials of a company if the government detects a case of fraud or misleading information.