Dubai Silicon Oasis (DSO) was first started in 2004 and has since maintained a very high standard both in the mode of operation and in the quality of services. Governed by very high standards, Dubai Silicon Oasis Authority (DSOA) is a free zone with a global reputation as owned and managed by the Dubai Government. The main motivation for setting up the Dubai Silicon Oasis (DSO) was so that the region could become a hub for modern technology-based companies.
It is imperative that all firms based out of the Dubai Silicon Oasis (DSO) Free Zone have their financial books audited strictly by registered audit firms located within the Dubai Silicon Oasis Free Zone. This means that all audits performed by auditing companies that are not within the Dubai Silicon Oasis free zone are not allowed to perform the audit. The same applies to liquidation services as well as the provision of any services to firms operating from within the Dubai Silicon Oasis free zone.
DSO is the only free zone in the region that serves both the working and living communities as a technology park. Large corporations, startups, and medium-sized organizations, universities and an incubation center, venture capital funds, high-tech infrastructure, government, and business services are all part of the DSO’s ambition.
Keeping Accounting Records in Order to Conduct Audits
In order to accurately present the financial health of a firm, companies must keep accounting records, including underlying papers that are enough to prove or explain activities. Companies registered in DSOA must have accounting records that comply with IFRS and provide a realistic picture of their profit and loss for the year.
Why is a DSO audit by approved auditors required?
This is in regards to commercial companies, and is in line with Regulation Number (1/2006) that was issued in conformity to law number (7) of 2004) following an amendment registered as number (16) of 2005. The law was also noted under the UAE Federal Law Number (8) of 1984.
According to that law, it is mandatory for all companies registered and operating inside the Dubai Silicon Oasis free zone to get their financial books audited by the Dubai Silicon Oasis Authority (DSOA), which is the only registered and approved audit firm recognized for this particular task within the zone.
Under the same regulation, the law demands that firms looking to hire auditors must ensure that these auditors are independent, as enabled by a rotation structure. When an approved audit firm is brought in for the respective service, they ensure that the client company operates in line with both the AML and CFT protocols as defined by the Central Bank of UAE. At the same time, the auditing company must also report to the authorities should they have any cause for suspicion about activities going against the regulations of Anti-money laundering and CFT.
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 they are free of material misstatements. In addition, the auditor must explain in his report if the company is engaged in the activities allowed under its license.
The DSO-approved auditors must determine if the company has kept proper documents, and the auditor has the authority to conduct investigations. The auditors must also confirm that the company’s accounts and accounting records and returns are in sync. Companies operating in DSO can select an auditing firm from a list of recognized firms based on their reputation and experience.
The Financial Audit must be conducted by DSO Approved Auditors.
Auditors ask organizations to provide documents corresponding to the relevant year in order to conduct audits and assurances. This enables the auditor’s task to make a judgment on the financial condition by studying the financial statements for the relevant year in order to comply with regulations.
The following documents must be presented by the companies:
- Statements of Accounts
- All financial transactions require credit/debit confirmation.
- Bills and invoices copies
- Memorandum of Association (MoA)
- Articles of Association (AOA)
- The Latest Trade License
- Registration Details for VAT and Excise Tax
- Books of Accounts
Dubai Silicon Oasis Auditing Services (DSO)
Intellect Chartered Accountants (ICA) is a firm of registered auditors in the United Arab Emirates’ numerous free zones. In the Dubai Silicon Oasis, ICA is also one of the permitted audit firms (DSO). ICA has been a chartered accountants audit firm in Dubai and the UAE since 2000, serving hundreds of businesses. ICA has dedicated external auditors in the free zone who have experience serving businesses in the Dubai Silicon Oasis to ensure that regulatory requirements and instructions are followed, as it aids management in understanding the current financial health of the business and enables them to find ways to improve business growth while adhering to regulatory guidelines and meeting requirements.
The ICA team of auditors verifies that the enterprises obey the UAE central bank’s rules and regulations, as well as the best practices of local and international reporting standards, such as IFRS, AML, and CFT.
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Regulators in the financial sector within the Dubai and UAE community have made it a law that all businesses operating within the Dubai Silicon Oasis free zone be audited by a registered firm under the same zone.
An audit report must be correct and accurate, providing a clear and concise reflection of the current financial state of the company. Integrity is key when it comes to financial reporting, hence the mandatory requirement that businesses or firms use the services of a registered auditing company.
An auditor is required by law to report any instances of non-compliance and fraud if they happen to identify it in a company.
Intellect Chartered Accountants stand among the best DSO-approved auditing firms in UAE, providing industry-standard auditing services that are geared at ensuring the business performs well while operating within legal confines.
With external auditing services, you are assured of an objective eye to provide you with an accurate business reflection. The opposite comes with a lot of bias, often conforming results to what the management would want to see.