Independent Auditor’s Report in Dubai

Audit December 30, 2020

All the public limited companies listed in the capital market of Dubai, Abu Dhabi and UAE are instructed to audit their financial statements by any independent external auditors annually. After audit performance, the audit firms in Dubai will prepare an independent auditor’s report the structure of which will follow the instructions of IFRS.

For your convenience, under each content, real-life application of respective content has been identified using independent auditor’s report of DXB Entertainments.

Title of the report

An audit report starts with title namely “Auditor’s Report” or “Independent Auditor’s Report”.

Addressee

It indicates the mentioning of auditors regarding the parties for whom the report has been prepared and to whom it will be presented. Normally the general shareholders are addressed by audit companies in Dubai here. In other cases, companies by which the audit company in Dubai has been employed are addressed here.

Introductory paragraph

Here it is asserted that the financial statements of the company by which the audit firms in Dubai were employed have been audited. In this section, the attestation area is specified. It can be the business’s financial statements, internal control system etc. Here the components that have been audited are specified along with the period of those information audited.

Opinion

It is the most important part of auditor’s report. After completing an audit on a business, the associated audit firm in Dubai will give a qualified or unqualified opinion on the quality of financial statements. Mainly whether the financial reporting of their client has been prepared in compliance with accounting standards.

Basis for opinion

This section presents the auditing standards the audit firms in Dubai have followed during the audit period. They also mention the reasons or foundation based on which they concluded in a particular opinion.

Key Audit Matters

When from numerous transactions of a business, the emphasis of general users of this report needs to be concentrated on specific matters, key audit matters are presented after the “basis for opinion” section.

Other information

The content of this section does not include the scope of audit firms in Dubai that they must perform. They just go through the information relevant to the clients’ consolidated financial statements to find out whether there is found any material misstatement or discrepancy by their knowledge. They do not give assurance on the accuracy of the items that fall under “Other information”.

Responsibility of management

In this section, audit companies in Dubai mention that it is only the responsibility of the management for the right or wrong reporting of financial statements. Sometimes this statement is not found in the auditors’ reports. Whether it is mentioned or not, preparing and presenting financial information is the sole responsibility of management.

Responsibility of the auditors

In this section, the responsibilities of audit companies in Dubai while auditing a business are presented precisely to get users of the report an idea regarding their level of independence. They here specify that the ISA regulations do not oblige them to provide guarantee on the fairness the audited financial reports. Rather they provide reasonable assurance limited by their level of independence and other resource or access constraints. Here it is also mentioned that the presence of any material misstatement in the business for the period covered under audit does not necessarily mean auditors will be able to detect them if the company intentionally hides that item.

Other reporting responsibility

Apart from management and auditors’ responsibilities, if the external auditors in Dubai consider it important to present other legal or regulatory obligations they have to follow while auditing the business, they can present it in this section.

Deloitte reported regulatory requirements under this section in the auditor’s report of DXB Entertainments.