Definition

An Audit is the independent examination of a company’s financial statements by a licensed auditor to ensure they are accurate and comply with UAE laws.

Key points

• Required annually for many businesses, especially free zone companies.
• Essential for trade license renewal.
• Provides assurance to regulators, investors, and banks.
• Must be performed by an auditor approved in the UAE.

Practical example

A mainland LLC preparing to renew its trade license must provide audited financial statements from a licensed audit firm.

Why it matters

Audits build trust, support compliance, and are mandatory for many UAE businesses.