Submission of a company's signed audit report is mandatory in the DIFC, unless exempt under DIFC Law No. 5/2018 DIFC Companies Law (as amended by DIFC Law No. 2/2022).

Financial statements should be audited by an auditor approved by the DIFC. The DIFC has provided a list of approved auditors that can be found on the DIFC website.

It is an important requirement for companies to comply with the audit requirement as it is directly associated with the process of renewing companies' annual business license in the DIFC. Accounts are required to be audited within six months after the end of the company's financial year.

Maintenance of accounting records are found under chapter 2 of DIFC Law No. 5/2018.

With the introduction of corporate tax, maintaining proper books of accounts is increasingly important as the tax is calculated on the taxable income of the company as reflected in the accounting records.

This Practice Note provides an overview of:

• audit requirements in the DIFC;

• determining a company's financial year;

• duty to keep accounting records;

• duties and rights of an auditor; and

• requirements of an audit report.

DIFC: Dubai International Financial Centre.