A tax audit in UAE is basically a tax assessment of a company performed by the UAE government. The government ensures that a company is paying all taxes on time. The audit is performed by FTA and it ensures that every due and taxes is paid to the government within the timeframe.
The FTA authorities have the right to conduct an audit anytime whenever they want without a specific reason. Although, at least five days prior, a notice is given to the company by FTA authorities before conducting the audit. This notice contains information like audit date, place, involved parties, reason (if available), etc.
Financial auditing is the way toward inspecting the budgetary records of a company to make sure they are accurate and right as per the applicable rules (including accepted accounting standards), regulations, and laws. External auditors are independent and from outside who perform the audit in a clean and fairway.
On the other hand, internal auditors are from inside the organization and perform the audit to examine records and help improve internal processes such as operations, internal controls, risk management, and governance of the company and submit their report to the top level of management.
What do You Need to Do to Be Prepared for the Audit?
A tax consultant can assist you to be prepared for an audit. He/she can advise you on how you can be prepared for an audit. There are some reviews that are necessary to prepare and mentioned as follows:
1. Review of the system
2. Review of Calculations Tax
3. Review of VAT Returns
4. Review of Payment of Tax Due
We have a professional audit team that performs the audit responsibilities to provide growth and benefit to our client’s business in the long run. Through audit services, we create transparency and accuracy to the financial status of their business and let them know whether their business is in compliance with the obligatory values and regulations a business has to follow.