Audit in the UAE (Free Zones + Mainland) reveal recurring issues among SMEs. Understanding these findings helps businesses prepare, avoid delays, and strengthen financial controls.
Top Audit Findings
1. Incomplete Accounting Records
- Missing invoices
- Lack of supporting documents
- No proper bookkeeping
2. VAT Errors
- Wrong VAT rate
- Missing TRN
- Unrecoverable input VAT claimed
3. IFRS Non-Compliance
- Incorrect revenue recognition (IFRS 15)
- Lease accounting errors (IFRS 16)
- No impairment reviews
4. Poor Inventory Control
- No stock count
- Differences between GL and physical stock
- Unrecorded damaged items
5. Payroll & HR Issues
- Missing contracts
- Wrong leave provisions
- WPS gaps
6. Related-Party Transactions
- No agreements
- No TP documentation
- Non-arm’s-length pricing
How to Prepare for it
- Reconcile all accounts (bank, AR, AP)
- Maintain complete documentation
- Prepare IFRS-compliant financials
- Conduct internal reviews
- Fix VAT issues before the audit
- Prepare CT documentation
Conclusion
SMEs can drastically improve audit outcomes by strengthening documentation, internal controls, VAT records, and IFRS compliance.
Call to Action
Advanced AnalytIQ provides Audit Preparation and IFRS Compliance services for UAE businesses.
Contact us to prepare your 2025 audited FS.