According to a new announcement from the RAKEZ Authority, the Ras Al Khaimah Economic Zone (RAKEZ), founded by the government of Ras Al Khaimah, has made auditing essential for enterprises operating in the RAKEZ starting in 2020. Within six months after the conclusion of the company’s financial year, companies must submit a copy of their audited financial statements for the 2019 financial year, as well as any subsequent years. Companies operating in RAKEZ must have their books of accounts audited by one of RAKEZ’s registered audit firms.
Audit firms that are not RAKEZ-registered are not permitted to conduct audits, liquidations, or provide services to RAKEZ-licensed businesses. The new rules are in place to ensure that registered companies follow local and international standards such as the International Financial Reporting Standards (IFRS), Anti-Money Laundering (AML), and Combating Terrorism Financing (CFT).
The Economic Zone of Ras Al Khaimah (RAKEZ)
RAKEZ is one of the largest economic zones in the UAE, with over 14,500 firms. It is located in the northernmost emirate, Ras al Khaimah. The strategic location in Ras al Khaimah allows access to markets in South Africa, Europe, Southern and Central Asia, and other Middle Eastern countries, which is of great value to the companies. The competitive real-estate costs in Ras Al Khaimah, as well as the availability of property on lease, are a huge plus for investors. In addition, there are no limits on currency exchange or labor recruitment in the emirate.
Why Is It Necessary To Appoint Approved Auditors In RAKEZ?
Companies that are registered with RAKEZ must appoint an auditor to review and report on the accounts prepared in accordance with local and international regulations. The auditor’s report must state whether the company’s financial statements comply with the International Financial Reporting Standards (IFRS) and that the company is not involved in money laundering.
The auditor’s report must state whether the accounts offer an accurate and fair picture of the company’s financial situation at the end of the financial year and whether there are any material misstatements in the accounts. In addition, the auditor must explain in his report if the company is solely engaged in activities that are permitted by its trade license. Before renewing a trade license, the authorities heavily rely on the auditor’s findings.
The RAKEZ-approved auditor must conduct investigations to determine if the company has kept proper documents. The auditor must also confirm that the company’s accounts and accounting records and returns are in alignment. Failure to submit the audited financial statements would result in a fine of AED 2,500, as well as the possibility of service suspension.
Companies operating in RAKEZ have the flexibility of selecting one of the top RAKEZ certified auditing firms based on their reputation and experience.
The advantages of auditing in RAKEZ
Intellect Chartered Accountants provides professional audit services in the Ras al Khaimah Economic Zone as one of the RAKEZ accredited auditors.
- We serve businesses in RAKEZ with cost-effective and efficient solutions to their difficulties
- We ensure efficiency by ensuring that all services and transactions are as smooth and transparent as possible
- We provide businesses with a customized business solution that is personalized to their operations
- We assist you in better understanding your business and market trends so that you can make more educated decisions
What are the best practices for managing and presenting accounting records for auditing?
Companies must keep accounting records, as well as supporting papers, that is sufficient to justify transactions. The financial status of the company must be disclosed with acceptable accuracy in the records. The accounting records must be in accordance with IFRS and present a true picture of the profit and loss for the year.
Documents Required for the Audit by the RAKEZ Approved Auditors
Auditors ask companies to provide documents pertaining to the relevant year in order to conduct audits and assurances, which makes it easier for the auditor to formulate an opinion on the financial position by reviewing financial statements at the end of the year to ensure compliance with legislation. The following documents must be presented by the companies:
- Statements of Bank Accounts
- All financial transactions require credit/debit confirmation
- Bills and invoices copies
- Memorandum of Association (MoA)
- Articles of Association (AOA)
- The most recent trade license
- VAT and Excise Tax Registration Information (If Applicable)
- Accounts Payable
RAKEZ Auditing Services
It is critical to remember that enterprises must select an auditor from the RAKEZ Approved List of Auditors. Intellect Chartered Accountants (ICA) is leading auditing and accounting firm in the United Arab Emirates. The Ras Al Khaimah Economic Zone (RAKEZ) Authority has registered ICA. I CA’s skilled team of auditors examines and reports on the financial statements of companies operating in RAKEZ. ICA auditors also provide an accurate and fair view of a company’s financial situation, ensuring that the accounts are free of major misstatements and conform with local and international requirements such as IFRS, Anti Money Laundering (AML), and Combating Financing of Terrorism (CFT).
We are listed in the new list of approved auditors in RAKEZ also, Check The PDF Here.
Yes, all RAKEZ-registered enterprises must undergo an external audit.
Financial statement audits can only be performed by audit companies that have been approved by the RAKEZ Authority.
Yes, Intellect Chartered Accountants is a RAKEZ-approved audit firm that can conduct external audits of firms and branches in the Ras Al Khaimah Economic Zone.