Auditing & Financial Statements in Sharjah

It depends on your jurisdiction. Most free zones require annual audited financial statements for license renewal. Mainland companies with limited liability (LLC) are required to appoint an auditor under the Commercial Companies Law. Additionally, businesses subject to Corporate Tax should maintain audited financials to support their tax filings.

Full IFRS is a comprehensive set of standards designed for large public companies. IFRS for SMEs is a simplified version suitable for small and medium enterprises that do not have public accountability. Most UAE SMEs can use IFRS for SMEs, which is less complex and requires fewer disclosures.

A standard audit for an SME takes 2-4 weeks from planning to report issuance, depending on the complexity of operations and the quality of your financial records. Larger companies or first-time audits may take longer. Having organized records significantly speeds up the process.

Shams freelancers with revenue below AED 3 million are generally exempt from mandatory audits for license renewal. However, if your Shams freelancer license involves specific regulated activities or if the FTA requests audited statements for Corporate Tax purposes, you may need to engage an auditor.

Sharjah trading companies must undergo physical inventory counts as part of their audit. Auditors will observe year-end stock counts, verify inventory valuation methods (weighted average, FIFO), test for obsolete stock provisions, and reconcile physical counts to accounting records. Multi-warehouse businesses require inventory procedures at each location.

Audit fees for Sharjah SMEs typically range from AED 5,000 to AED 25,000 depending on company size, complexity, and sector. Manufacturing companies with complex inventory generally cost more than service businesses. Free zone companies needing audits for both license renewal and CT compliance can bundle these requirements.