Audit & Assurance

The success of a business and the assurance of complying with all the statutory regulatory requirements is the aim of every business owner. This can only be accomplished by choosing an audit firm that can provide you with customised solutions based on the needs of your company. SM JOSHI Chartered Accountants is one of the trusted and reliable auditing firms in Dubai offering tailored solutions to meet the client’s requirements in this dynamic environment.

SM JOSHI Chartered Accountants delivers a wide range of audit and assurance services to businesses in UAE with the help of an audit team of qualified and skilled personnel. Our team has experience working in a multitude of industries and service sectors, keeping themselves up to date with all the current changes happening around the world.

Auditing and assurance do not just involve inspecting if an organisation is compliant with the accounting standards and regulations governing the business, they encompass a range of other services including providing suggestions on how to improve accounting processes, identifying accounting risks involved in the business, evaluating the design and implementation of controls, among others. Our reliable and efficient audit team will work with you from the planning stage till the reporting stage.

Our personnel at SM JOSHI Chartered Accountants has years of experience providing customised auditing services, including:

• Statutory Audit
• Internal Audit
• Stock and Receivables Audit
• Revenue Audit
• Audit for Non-Profit Organisations
• Agreed Upon Procedures
• Company Liquidation Services
• Business Plans & Feasibility Studies
• Business Valuation & Due Diligence
• CFO Services
• Other Advisory Services

Accounting and Bookkeeping

Accounting and bookkeeping have been timeless, yet proven methods of maintaining finances of companies and organisations. However, new policies and legislations along with the expansion of companies have made it more complex by the day. Proper accounting and bookkeeping are essential to keep track of your finances as well as ensure the smooth operations of your business. It also helps you to make sound decisions for the company and identify fraudulent activities.

Running an organisation while keeping track of your finances is not as easy as it seems, especially with the implementation of excise and VAT. Nowadays, organisations choose to outsource their bookkeeping to reduce costs on staff, benefit from the expertise of the service provider as well as direct their focus towards the core operations of company. SM JOSHI Chartered Accountants has a dedicated team of accountants proficient in delivering bookkeeping and accounting services to organisations across UAE.

The services offered by our team are customised to meet your requirements and we provide the flexibility to respond to the growing needs of the business.

With years of experience in this business coupled with the knowledge of a multitude of tools and softwares, we have the expertise to understand the dynamics of your business and provide exceptional and thorough accounting and bookkeeping services. Our services include:

• Bookkeeping and MIS reporting
• Management reporting
• Data Entry
• Reconciliation
• Budgeting and Forecasting
• Accounting and Supervision
• Accounts Receivables and Payables Management
• Payroll Management
• Compilation of Management Accounts
• Maintenance of Excise and VAT Accounts
• Accounting Compliance Checks
• Financial Statement Preparation
• Cash Flow Analysis

When you choose our qualified and reliable team SM JOSHI Chartered Accountants to handle the books of accounts of your company, we will ensure that you are fully compliant with all the regulations and give you suggestions on how you can improve your internal control processes and in turn, the accuracy of your management reports.

Internal Audit

Having a comprehensive internal audit done periodically within the company will help evaluate the internal processes of the company. The objective of an internal audit is not just to verify if the organisation’s compliance with the laws and regulations, but also helps identify risks in the current processes.

When an organisation chooses a good internal audit team, there is a high chance that the company will end up with a better management system and internal control. Our internal audit team at SM JOSHI Chartered Accountants is one such team who strives for the betterment of the company. With our team by your side, you will receive prudent advice on how to improve the governance, risk management, and management controls of the company.

Outsourcing your internal audit by our team will give you an unbiased opinion on the processes of your company. Not only will we review the books of your company and review the compliance to regulations and policies, but we will also evaluate the organisational risks and help you manage your finances. There are many benefits when you choose us for an internal audit:

• Unbiased opinion from external auditors
• Suggestions to improve the processes and performance of the company
• Experienced auditors who have worked in different industries
• Access to a vast range of resources
• Cross-functional expertise across different departments
• In depth understanding of various ERPs
• Thorough compliance checks

The internal audit will be customised according to the company structure and business requirements. Moreover, once you’ve completed an internal audit with us, you’ll receive various new suggestions aimed at your company’s improvement.

IFRS Impact Assessment

International Financial Reporting Standards (IFRS) are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. When a new IFRS comes into force by International Accounting Standards Board (IASB) or an existing standard gets revised, its impact on the financial statements with respect to measurement, recognition, and disclosure on the assets, liabilities, revenue and expenses of an entity need to be assessed.

IFRS impact assessment from time to time is beneficial for stakeholders and prospective investors to get a fair idea on the impact of new or revised IFRS on the business of the entity.

AUP Reports

An agreed-upon procedure is a standard  to perform an audit on a specific test or business process. The procedures are designed and agreed upon by the entity conducting the audit as well as any appropriate third parties. These reports are meant for meeting the specifically desired results by the client.

Special Audit Reports & Certifications

Requirement of Special audit reports may usually arise at the request of the auditee to probe into a specific area of organisation’s activity or by Government order if the auditee’s financial affairs are not in line with accepted accounting practices or initiated by a third party. At times clients need a certificate from auditor to submit to financial institutions or authorities locally or internationally.

Company Liquidation Services

Just like how incorporation of a company has many formalities, so does liquidation. Planning the liquidation requires resources and consists of a lot of formalities. Liquidation proceedings are usually long, time-consuming and expensive. Having a specialised team to handle the liquidation of the company will relieve you from the hassle of managing the liquidation process.

SM JOSHI Chartered Accountants is your trusted partner when you plan to liquidate your company. Our team of specialists provide liquidation services to all entities across UAE – limited liability companies, free zone companies and offshore companies. We will ensure that the liquidation process is done in accordance with the regulations and laws. You will receive step-by-step guidance on the actions to be taken while closing down the company.

Our experienced team can also help with the filling up of various forms and ensure that all the necessary documents are made available, like:

• License Copy
• Memorandum of Association Copy with all the changes
• Power of Attorney if any
• Shareholders Resolution
• Shareholders passport Copy
• Emirates ID Copy
• Deregistration Application Form

At SM JOSHI Chartered Accountants, we not only help you with the liquidation process, but we will also advice you on all the necessary steps to be taken to meet your legal obligations and will help you prepare your Statement of Affairs and supplementary information that need to be presented to the creditors and relevant authorities. We will work with you from the initial planning stage till your company is dissolved and you receive the final Liquidation Certificate.

Economic Substance Regulations

Economic Substance Regulation (ESR) was initially introduced by the UAE government in 2019, to align the entire region with global standards in the prevention of Base Erosion and Profit/Income Shifting (BEPS).

The United Arab Emirates Cabinet had issued the Cabinet of Ministers Resolution No.31 of 2019, where it states that all in-scope UAE entities carrying on Relevant Activities need to maintain an economic substance. This has been applied in all jurisdictions of the UAE, including all the free zones and financial free zones. This was followed by the Ministerial Decision 215 for 2019, which gave directives for the implementation of the provisions of Cabinet Decision no. 31/2019. On 10th August 2020, a New Economic Substance Regulation was introduced in the UAE via Cabinet Resolution 57/2020, which repealed and revoked Cabinet Resolution 31/2019 and Ministerial Decision 100 for 2020 was issued to give directives for the implementation of the provisions of Cabinet Decision no. 57/2020.

The Economic Substance Regulation is applicable to those entities carrying the following Relevant Activities:

• Banking
• Insurance
• Investment Fund Management
• Lease-Finance
• Shipping
• Headquaters
• Intellectual Property
• Holding Company
• Distribution & Service Centre

There are also a few Exempted Licensee as specified in the Cabinet Resolution of 57/2020 and the following entities fall under this category:

• An Investment Fund
• A licensee that is Tax Resident in a Jurisdiction other than in the UAE
• A licensee that is wholly owned by one or more UAE Resident and meets the following conditions:
  • An entity should not be part of MNE Group
  • An entity should carry business only in the UAE
  
• A licensee that is the branch of a foreign entity the Relevant Income of which is subject to tax in a jurisdiction other than UAE

If the business meets the following conditions in the UAE Economic Test, the ESR applies to the entity:

• The UAE licensee conducts or performs a Core Income/Profit Generating Activity (CIGA) in UAE
• The business is managed and directed in the country in relation to that activity
• The business has a sufficient number of full-time employees or they incur significant amount on operating expenditure or by outsourcing CIGA to a third-party service provider in UAE, or if there are sufficient physical assets

It is important to assess whether the entity is engaged in any of the listed relevant activities to ensure that they comply with the Economic Substance Regulations in UAE. Since this regulation was recently issued by the UAE government, many businesses have no idea what steps they will have to take to ensure compliance. This is where SM JOSHI Chartered Accountants comes to the picture.

Our team at SM JOSHI Chartered Accountants are well versed with the Economic Substance Regulations in UAE and have done thorough research on its policies and requirements. If the regulation is applicable for your company, then our team of consultants can assess your entity to identify if all the regulations are being complied with and the criteria on the satisfaction are met or not. And, if your company does not meet all the criteria, we will identify the issue and provide recommendations on how you can ensure the compliance of Economic Substance Regulation in your entity. We provide a range of ESR services, including:

• Consulting
• Identifying entities that qualify for ESR compliance
• Identify qualified business segments for ESR compliance
• Report and advice
• Secretarial service that are related to ESR record maintenance
• Filing ESR properly with the authority

Ultimate Beneficial Owner

Cabinet Decision No.58 of 2020 dated 28 August 2020 passed by the UAE Cabinet to document the Beneficial Ownership of all entities incorporated in the UAE Mainland & in the Non-financial Free Zones by registering with the Registrar of relevant authority.

Key matters of the Regulation:

• All companies in the UAE, both mainland and non-financial free zone, must keep at their office premises the following registers:
  • Register of Shareholders
  • Register of Beneficial Owners &
  • Register of Nominee Directors.
  However, the following Companies are not covered by the Decision:
  • Companies owned by the Federal or local government or any other companies wholly owned by these companies, and
  • those entities registered within financial free zones (such as ADGM and DIFC).
• Companies must file such information relating to the shareholders and beneficial owners with the relevant registrar and licensing authorities responsible for supervising the register of trade names for the various types of establishments registered in the UAE on or before 27 October 2020.
• Companies must notify the Registrar of any change or amendment to the information provided within 15 days of such change or amendment.
• Every entity governed by the regulation must designate an individual who should be the point of contact for the Registrar to contact in relation to any disclosure.
• All the Companies covered by the Decision are obliged to take reasonable measures to obtain appropriate, accurate and up-to-date data for the Registers and preserve its records from damage, loss or destruction.
• Each company must take reasonable steps to ensure transparency, to obtain accurate information regarding the beneficial ownership, and to update the information on the registers on a regular basis.
• An Entity shall maintain, in the Register of Shareholders and Beneficial Owners, the details of the respective Shareholders & Beneficial Owners (including Nominee Directors) as set out in the Decision and update the Register with any change occurring within fifteen (15) days from the date of such change.
• All information submitted by the companies to their respective Registrant and Authorities will be kept confidential.
• Any case of a violation to the provisions of this Decision can result in the Minister of Economy or the Licensing Authority imposing one or more sanctions.

Get in touch with our team at SM JOSHI Chartered Accountants we will help you to:

• Determine UBOs of your company &
• Prepare the necessary registers to be submitted to the Registrar of your Regulator