MHM is a UAE based Assurance Firm rendering services as Auditors and Accountants, as well as Advisors and Consultants for financial planning, formation of companies and allied commercial and legal matters, providing its services with the following insights: According to Federal Law No. 2 of 2015 or the UAE Commercial Companies Law, every company is required to assign a licensed auditor that is registered under the Ministry of Economy for the auditing of their financial affairs.
As per the provisions of the Law, it is mandatory to get the books of accounts audited every year. Hence with effect from 1st July 2017, every company registered under the law should get their accounts audited by a registered auditor.
The audit is the process of evaluating the accounting entries present in the financial statement of the company. Audit checks the accuracy of financial reports, whereas Assurance is the process of analysing and used in the assessment of accounting entries and financial records.
Internal audit examines issues that are related to risks and business practices, whereas external audit examines financial records of a business and an external auditor issues expert opinion from the financial report assessment.
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board.