Understanding Mandatory Audit Requirements in the UAE: What Every Business Should Know

In the dynamic business environment of the United Arab Emirates (UAE), audit requirements in UAE are pivotal for ensuring financial transparency and regulatory compliance. The country has established a comprehensive legal framework mandating audits for various business entities, reinforcing its commitment to a robust and transparent economic system.

The Legal Framework Governing Audits in the UAE

The cornerstone of UAE audit regulations is the Federal Decree-Law No. (41) of 2023, which governs the accounting and auditing profession. This law mandates that only licensed professionals and firms can offer auditing services within the country, ensuring that qualified entities conduct audits.

Complementing this, Ministerial Decision No. 84 of 2025 stipulates that businesses exceeding a revenue threshold of AED 50 million and Qualifying Free Zone Persons must prepare and maintain audited financial statements. This decision aligns with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, emphasizing the importance of accurate financial reporting and enforcing audit requirements in UAE.

Mandatory Audit Requirements for Businesses

Under the current UAE company law and Corporate Tax Law,, certain entities are obligated to undergo financial audits:

• Mainland Companies: All mainland companies are required to maintain audited financial statements to ensure transparency and accountability, as mandated by UAE company law.

• Free Zone Entities: While regulations vary across Free Zones, entities classified as Qualifying Free Zone Persons must adhere to audit requirements, irrespective of their revenue level, as a condition to access the 0% corporate tax rate, as per Ministerial Decision No. 84 of 2025.

• Taxable Persons (non-Grouped): A Taxable Person that is not part of a Tax Group and has revenue exceeding AED 50 million during a tax period must maintain audited financial statements, per the Corporate Tax Law and UAE audit regulations.

• Tax Groups: Tax Groups must prepare audited special purpose consolidated financial statements.

These mandates reflect the country’s continued commitment to financial integrity and regulatory compliance.

The Role of Regulatory Authorities

Several authorities play pivotal roles in UAE audit regulations:

• Ministry of Economy: Through its Auditors Department, the Ministry licenses and monitors auditing professionals and firms.

• Financial Audit Authority Dubai: Established under Law No. (4) of 2018, the financial audit authority Dubai oversees the auditing of public funds and ensures that government-related entities comply with proper financial practices.

• UAE Accountability Authority (UAEAA): As the nation’s supreme audit institution, it is responsible for auditing federal government entities ,ensuring accountability and transparency in public sector operations.

Choosing the Right Audit Partner

Choosing the right audit firm is crucial for meeting statutory requirements and ensuring credibility in the marketplace. Here’s what to consider:

• Licensing: Ensure the firm is licensed by the Ministry of Economy and authorised to conduct audits.

• Industry Expertise: Choose a firm with a proven track record in your specific industry.

• Reputation: Seek firms known for excellence and integrity, particularly among the top audit companies UAE.

Whether you are a startup or an established enterprise, working with trusted audit firms in Dubai can help you maintain compliance and build investor confidence. At the same time, ensuring your audit partner understands the UAE's top audit companies and the UAE company law audit is essential.

Understanding and complying with audit requirements in UAE is essential for every business striving for long-term success and legal conformity. With a growing emphasis on transparency and governance, staying ahead of UAE audit regulations is not just about ticking boxes—it's about building a trusted, sustainable business.

At AMCA, we pride ourselves on being one of the most trusted UAE audit firms offering end-to-end audit and assurance services tailored to your unique business needs. Whether you're navigating UAE company law audit mandates for a reliable partner among the top audit companies UAE, our experienced professionals ensure your compliance journey is smooth, transparent, and efficient.

Ready to ensure your business meets all mandatory audit obligations? 

Let AMCA be your partner in compliance. As one of Dubai's most reliable and experienced audit firms, we offer expert support in statutory audits, internal controls, and financial reviews. Contact us today to schedule a free consultation and find out how we can help your company stay compliant and confident under the latest UAE audit regulations.

Get in touch with AMCA today and take the first step toward financial transparency and regulatory excellence.