Audit Questions & Answers.

For tax periods beginning on or after 1 January 2025, the specified categories include taxable persons other than a Corporate Tax Group whose revenue exceeds AED 50 million, and Qualifying Free Zone Persons. Tax Groups have separate provisions. Ministerial Decision 84 of 2025 sets out the requirements. Assess the relevant person's status and revenue, then confirm the report required. Company law, a licensing authority, a lender or a contract may impose an audit separately, even where the corporate tax threshold does not apply.

Internal audit examines selected risks, processes and controls for management or those overseeing the organisation. An external financial-statement audit has a different purpose and reporting framework. One does not automatically replace the other. We establish the intended users and expected output before deciding which engagement fits the requirement.

Yes. You may want to examine a process such as purchasing, expenses or credit control before considering a wider programme. The scope should define the concern, period, locations and evidence available. A focused review can be useful, provided readers understand which related processes have not been assessed.

No review should be described as a guarantee that all misconduct or errors will be detected. Testing has a defined scope and evidence limitations. If the purpose is to investigate a particular allegation, that should be stated at the outset so the required forensic, legal and confidentiality arrangements can be considered.

The reporting line should allow findings to reach people with the authority to address them and provide appropriate oversight. We agree the recipient and escalation arrangements before fieldwork. Process owners need enough information to respond and implement actions, while sensitive material may require more restricted circulation.

That creates an objectivity concern which must be assessed before accepting the review. We identify prior responsibilities and any conflict with the proposed assurance work. The response may require separation, a different arrangement or declining that part of the engagement. The scope should never imply independence without considering these facts.

Management owns the agreed changes. Where follow-up is included, we request evidence and assess whether the action addresses the finding. An action may be implemented but still fail to resolve the underlying problem. The follow-up report distinguishes completed, overdue and partially effective actions so oversight can continue.

The answer depends on legal form, licensing rules, tax status and contractual requirements. A Corporate Tax threshold is only one part of that assessment. Share the company documents and the request you have received, and we can identify the applicable reporting requirement before proposing the engagement.

No. An audit opinion must follow the evidence and the applicable reporting framework. Material misstatements or limits on available evidence can affect the report. We explain queries and proposed adjustments during the work, but an engagement fee cannot purchase a particular conclusion or remove the auditor’s professional judgement.

Provide the authority’s current requirement and intended reporting period before the engagement is accepted. The relevant registration, list eligibility and signing arrangements must be checked. This page does not claim approval by every free zone or regulator; acceptance depends on the specific authority and engagement circumstances.

Any existing accounting role must be assessed for independence and other professional restrictions. The preparation of records and the audit are separate responsibilities. Depending on the facts and applicable requirements, separation or a different appointment may be necessary. We address this before acceptance rather than treating a combined scope as automatic.

Tell us at the planning stage. Some information can be recovered from banks, counterparties or existing systems, while other gaps may need a separate reconstruction project. The auditor decides whether the resulting evidence is sufficient. Management explanations alone do not necessarily replace missing documentation or remove a reporting limitation.

Timing depends on the entity, required procedures, availability of records, external confirmations and management responses. We agree a working timetable after reviewing the requirement. If a bank or authority has set a deadline, share it early so dependencies are visible; completion and the final report cannot be promised before the evidence is assessed.

Not necessarily. A stock count establishes quantities at a point in time. An inventory engagement may also examine records, cut-off, ownership, costing or controls. The proposal defines which procedures are included and what the resulting report means, so a quantity check is not mistaken for a full valuation or financial audit.

The coverage depends on the purpose, stock population and agreed method. Some engagements involve observation and selected test counts, while others require broader verification. We define coverage before work starts and explain the limitations in the report. No claim of complete verification should be made where only selected items were tested.

Sometimes, but movements need a controlled procedure. Receipts, dispatches and transfers must be identified so quantities can be reconciled to the chosen count point. We discuss the operating constraints with management during planning. An uncontrolled moving population can reduce the reliability of the exercise and create avoidable recount work.

We record observations within the agreed procedures and ask management for evidence about condition, usage and sale prospects. A valuation conclusion needs more than a visual label. Technical testing or specialist appraisal may be required for some goods. Management remains responsible for proposed write-downs and for providing the supporting commercial information.

We identify third-party holdings during planning and agree the evidence needed, which may include access arrangements, records or confirmations. Ownership and the location of goods are separate questions. Consignment terms and goods held for others must be distinguished so quantities are not added to the wrong entity’s inventory.

The external auditor decides what evidence it requires and whether it can use work performed by others. Involve that auditor before scheduling the count if the engagement is intended to support the annual audit. A standalone stock report should not be assumed to satisfy procedures that were never agreed with the auditor.