Audit Firm in Sharjah – Financial Auditors in Sharjah

 

Sharjah is an important business hub for the UAE with respect to manufacturing, trade, logistics, education, health care and SMEs. Due to the increasing compliance obligations for financial audits, VAT, corporate tax

, AML, financial due diligence, bank covenants and investors’ reports, businesses usually require assistance from tax experts and reliable audit firms in Sharjah.

Being one of the leading auditors in Sharjah, Vertix Auditing has vast knowledge and experience of local regulations and business acumen to deliver an audit that provides value to the stakeholders. We operate in all the major mainland areas and Free Zones. We draw upon our extensive experience to enable clients to guarantee meaningful financial reporting, meet legal and regulatory requirements, and improve their internal financial control systems.

We provide full spectrum of services including:

• External audits
• Internal audits
• Value Added Tax (VAT) audits and reviews on compliance
• Corporate tax compliance support
• Financial due diligence
• Free zone audits
• Risk assessments and reviews of internal controls
• Accounting & bookkeeping
• AML compliance
• Mergers & Acquisitions

Vertix Auditing offers complete statutory audit and assurance services, serving a wide variety of businesses, from mainland companies in Sharjah to family-owned and operated companies, and several others that are established in UAE Free Zones.

We particularly focus on companies operating in mainland, industrial and manufacturing zones, free zones like SAIF and Hamriyah free zones, trading and logistics businesses, and Multi-Emirate groups with Sharjah operations. A lot of businesses in Sharjah have branches across the UAE with offices in commercial hubs like Dubai Business Bay, Dubai Marina, JLT, Al Reem Island in Abu Dhabi, etc., we support such companies through our offices across the country.

What Businesses Usually Need from Auditing Firms in Sharjah

Businesses in Sharjah usually require the following services from auditing companies:

Statutory/External Financial Audits: Most mainland companies are required by law to have their annual financial statements audited as per the UAE Commercial Companies Law. Moreover, companies with bank facilities are required by banks to submit audit reports for getting or renewing their bank facilities.

Free Zone Audits: Companies operating from different free zones in UAE (such as SAIF Zone, Meydan, IFZA, Hamriyah Free Zone, KIZAD, etc.) also require mandatory annual audits. Majority of free zones do not renew their trade licenses until the audited accounts are submitted.

Corporate Tax Compliance: A financial audit is mandatory for companies with revenues above AED 50 million, those who fall into a tax group, or qualify as a qualifying free zone person.

Bookkeeping & Accounting Services: Ongoing day-to-day accounting record keeping and maintenance; payroll processing and preparation of financial statements to ensure they remain “audit ready” at all times.

Internal Audits: Although not compulsory, many organizations find them useful to identify areas of potential weaknesses, detect possible instances of fraud, improve operational efficiencies, and enhance internal controls.

Specialized Audits: Specialized audits include financial investigation audits; ICV audits, cryptocurrency performance audits, etc.

How to Choose the Best Audit Firm in Sharjah

A company needs to do more than compare prices when selecting an audit firm in Sharjah. The ideal audit firm will include technical skills and experience, regulatory compliance, business acumen, and timely delivery. More specifically, the ideal financial accounting firm will possess:

Strong Knowledge of UAE Regulations: The accounting firm you select should demonstrate its understanding of IFRS, ISA, VAT, corporate tax laws and regulations like corporate tax return preparation. The firm should also have knowledge of the UAE tax system, QFZP requirements, under what circumstances audited financial statements are required, penalties for non-compliance, etc.

Experience With Sharjah Business Structures: Sharjah’s economy has several components, including trade, manufacturing, logistics, education, and industrial sectors. An accounting firm experienced in these different structures can better assess the potential risks within each structure type, provide insightful recommendations related to the business structure, and more.

Understanding of Sharjah Free Zone Requirements: Many businesses operate from different free zones in Sharjah. You will need to ensure that your chosen accounting firm is registered with and approved by those free zones to ensure they understand the free zone requirements.

Ability to Support Wider Compliance: Select a firm which can provide more than just statutory audits. Examples of other services include corporate tax compliance, VAT filing submissions, transfer pricing studies, M&A due diligence reporting, or general business consultancy.

Reputation, Responsiveness, and Clarity: Choose a firm with strong reputation, good communication skills, and quick response time. The firm should be able to provide audited reports on time, highlight important areas for improvement, and avoid spending time on unnecessary or immaterial matters.

Our Audit Services in Sharjah

Vertix Auditing has a complete portfolio of audit and assurance services tailored specifically to meet the needs of Sharjah-based companies.

External Auditing

With our independent external audit services, we ensure that your company’s financial statements are prepared according to internationally recognized auditing and accounting standards. We spot material misstatements, control weaknesses, and fraud attempts during our audit. We also confirm if your financial statements reflect an accurate representation of your company.

An external audit is important because it enables you to:

• Submit a statutory report to the government annually
• Obtain loans and other financing from commercial lenders
• Report to your investors/shareholders
• Maintain compliance with Free Zone regulations
• Prepare for filing corporate income taxes

Internal Audits

Our internal auditing service assists in identifying and correcting weaknesses within the internal control system of your finance and accounts departments. Our primary objective is to evaluate existing systems and procedures to determine loop-holes in the internal control environment, opportunities to strengthen them, and what may increase the likelihood of errors or fraud attempts. Our internal audit service is most useful for companies with rapid expansion (i.e. start-up), family-owned enterprises, multiple branch locations, and/or high transaction volumes.

VAT Audit and Compliance Review

The UAE has made VAT a regular aspect of how businesses report on their finances. As such, we offer our clients the following VAT related services:

• Analysis of VAT returns filed by your company
• Review and analysis of output VAT
• Assessment of recoverable input VAT
• Analysis at transaction level (i.e. per invoice) to assess how you have treated VAT
• Reconciliation of your financial records with what was submitted to the tax authority
• A review of all the supporting documents related to the filing and determination of whether or not the return was submitted accurately
• Assistance for deregistration from VAT

Corporate Tax Compliance

UAE corporate tax compliance is mandatory on all the businesses. From corporate tax registration, filing, to deregistration, there are a number of rules and regulations that must be complied with to avoid fines and penalties. Tax is not for everyone and therefore any negligence may result in administrative penalties. We provide the following corporate tax compliance services to large number of clients:

• Detailed accounting review (including financial statements)
• Analysis of revenue & expenses
• Assessment of taxable and non-taxable Income
• Assessment of deductible and non-deductible expenses
• Accurate selection of elections
• Preparation of important disclosures, like related party disclosure, dividend income, etc.
• Prior period errors and adjustments
• Risk assessment of tax sensitive areas
• Full corporate tax audit

Financial Due Diligence

Focused financial due diligence for businesses, investors and buyers on the matters listed below:

• Proportionate assessment of profitability
• Financial risk analysis
• Detailed review of true earnings of the business
• Observations on working capital
• Commercial reasonableness of reported numbers

Note: Acquisitions, group restructuring, partner exits, and business valuation discussions are all the good reasons to use our services.

Free Zone Audit Services

All the companies that are registered with any of the Sharjah free zones are required to keep all the records of accounts and report annually on their financial activities. Because of this, they need to have a qualified auditor who will help them file with their respective authorities.

To assist our clients, we provide a complete set of services related to both audit and review of their annual financial reports, including providing advice on legal, regulatory and accounting requirements. In addition, we will also ensure that an audit is completed as quickly as possible while working closely with the client’s management team to make this process seamless.

Similar to Sharjah, free zones in other Emirates also require annual audits. You can find detailed information about our free zone auditing services for IFZA-registered companies, JAFZA, DSO, DWC, DMCC and other free zones on our website. This will help you understand how the reporting and auditing regulations differ from one area of the United Arab Emirates (UAE) to the other.

Industry-Specific Audit Services Relevant to Sharjah

Sharjah has a wide variety of economic activity based around manufacturing, trade, logistics, construction, real estate and many emerging activities such as hospitality, media and service. As such, there is an increasing need for specialist auditors who understand the specific needs of each sector and provide in-depth risk analysis and practical recommendations.

Our industry-specific audit services include:

• Construction audit services
• Real estate audit services
• External audit for trading companies
• Healthcare audit services
• Statutory audit for educational institutes in UAE
• Holding company audits
• Audit services for startups
• Audit for e-commerce companies
• Restaurant audit services
• Financial audits for hotels
• Holiday home audit services

Industries We Serve in Sharjah

Manufacturing and Industrial Companies

We perform detailed audit work with respect to inventory valuation, production cost allocations, work-in-progress valuations, fixed asset valuations and margin analyses. In addition to this, we also help our clients develop controls over the recording of stock movements and purchases. We also enable them to maintain a complete cost accounting record.

Trading and Distribution Businesses

Our auditors offer specialized auditing services for trading companies including revenue recognition, stock reconciliation, supplier controls, gross margin analysis, and VAT compliance. Our team utilizes specific auditing techniques for trading companies to ensure key stakeholders like banks, investors, and other lenders can rely on our audited accounts.

Construction and Contracting Companies

We assist contractors with project accounting, work-in-progress valuations, cost-to-complete analyses, contract revenue recognitions under IFRS 15, etc. Our construction audit services help establish improved financial control mechanisms and provide more reliable reporting for all parties interested in projects’ progress.

Real Estate and Property Management

Our audit services for property management companies provide an independent evaluation of the accuracy and completeness of all the income received from tenants, either through short, medium, or long term rentals. We also review the expenses incurred on and on behalf of landlords, reconciliations with landlords and finally payments of their net rental income. In addition, we determine if the client is compliant with local government regulations, reducing the likelihood of landlord-tenant disputes, and increasing investor confidence.

Healthcare and Medical Centers

Our healthcare audit services specifically focus on revenue recognition, insurance claims, controls implemented on the stock, inventory valuations, prevention from expiries, regulatory compliance on VAT and corporate tax, payroll management which is one of the major cost elements in the healthcare sector, and cash management.

Educational Institutes and Training Providers

Strong financial controls are necessary for these institutions to accurately recognize revenue. Our audit for school and colleges provides dedicated assessments of their financials, ensuring proper treatment of tuition fees, grants, and subsidies. Our services help demonstrate regulatory compliance as well as provide consistent financial reporting.

Startups and SMEs

Growing businesses may find themselves lacking in building a solid foundation for managing their finances before their first statutory audit. Our financial audit for Startups and SMEs provides practical solutions for those who wish to achieve audit readiness through implementing internal controls and preparing investor-ready reports.

Other Sectors

Our expertise spans a wide range of sectors in Sharjah and the UAE. We serve clients in:

• Consulting and professional services firms
• Hospitality, hotels, and tourism businesses
• Restaurants
• E-commerce and online trading companies
• Logistics and transportation
• Investment and holding companies
• Retail and consumer goods
• Technology and IT services
• Entertainment and media

Why Choose Vertix as Your Audit Firm in Sharjah

Businesses in Sharjah require an auditing firm to be technically competent, but also need someone they feel will understand what it means to do business. Vertix Auditing offers this.

Vertix Auditing has complete knowledge of all the UAE financial reporting standards, free zone Requirements and Tax-driven obligations, as well as the day-to-day operational challenges faced by companies based in Sharjah.

But Vertix does not stop once compliance boxes have been ticked. We take pride in providing accurate, clear, and timely insight into how to add value through our audit services.

We assist in strengthening your internal control processes, creating confidence in your company’s financial reporting, and preparing statements which your management team, banks, shareholder(s) and regulatory bodies will have complete faith in.

We also provide integration of Sharjah audit requirements with other services throughout the UAE, allowing you to benefit from one provider for your entire UAE audit needs.

Our Audit Process in Sharjah

Step 1 – Understanding the Business and Reporting Environment

Firstly, we develop an understanding of how the business organizes itself, what its daily operating practices are, what the current financial reporting standards (both national and international) are and what statutory obligations it has, as well as any other regulatory needs.

We will also want to determine if there is an operational difference between entities operating within a free-zone compared to those operating onshore, map their industry and spot any significant pressure points from either banks or other stakeholders.

Step 2 – Risk Assessment and Audit Planning

Next, we carry out a systematic review of the accounts and processes which are at risk of causing material misstatement or failure to comply with regulations. The main areas which would normally be assessed include:

• Revenue recognition
• Inventory valuations
• Trade receivables
• VAT compliance
• Project accounting
• Intercompany balances
• Expense categories that have a high tax exposure
• Transfer pricing

Step 3 – Review of Books, Records, and Supporting Documents

Next, we thoroughly review the accounting records, trial balance, general ledger, subsidiary ledgers, bank reconciliations and statements, major contracts and source documentation. At this point we can assess the overall reliability of the books and identify any areas that may require further investigation.

Step 4 – Detailed Audit Testing

At this next level we perform substantive testing; analytical procedures; transaction vouching; balance confirmations and control evaluations. It is here that we test in practical terms the accuracy; completeness and compliance with regulations of the reported figures.

Step 5 – Discussion of Findings and Changes

Immediately after we identify an issue or a number of issues, we will inform management about it, ask them if they can provide us with a clear explanation or additional documentation to support their position, suggest changes that need to be made (if any), and point out any areas where the financial reports or underlying documents may need improvement.

Step 6 – Audit Report and Recommendations

Once our audit is complete, we issue our final audit report; in addition, we share the results of our observations and suggestions as to how to improve the reporting process and the internal controls so that management is better prepared for any audits during future reporting periods.

Required Documents

In Sharjah, most companies are required by law to prepare an extensive group of financial and support materials prior to their audit to meet the UAE’s regulatory requirements including the SEDD, FTA, and UAE Corporate Tax Laws. These documents include:

• Financial Statements: Income statement, balance sheet, cash flow statement, statement of changes in equity, and notes to the accounts
• Ledger Account: All financial transaction details
• Bank Statements: Complete bank statements for each bank account for each month
• Receipts/Invoices: Supporting documentation of sales, purchases, income, and expense
• Tax Returns: Prior year filed tax returns filed with FTA
• Agreements/Contracts: Lease agreements, loan agreements, sales contract etc.
• Inventory Documents: Stock lists; inventory count and valuation; etc.
• Payroll Documents: Detailed information about employees, payroll summary reports, gratuity calculation, etc.
• Minutes of Board/Shareholders’ Meetings: All the minutes of board meetings during the financial year.

Comparison of Top Audit Firms in Sharjah

Choosing the right audit service provider is important. Different audit firms vary significantly in price, areas of expertise, quality of service, and areas of specialization. The following table provides a list of top-rated audit service providers in Sharjah with a significant local presence:

Audit Firm Name	Key Features	Pricing
Vertix Auditing	Statutory audits, forensic audits, accounting & bookkeeping, cryptocurrency accounting, business valuations, tax services (corporate tax, VAT, excise tax)	Low
PricewaterhouseCoopers (PwC)	Assurance, consulting, tax, audit, advisory, business restructuring, ERP consulting	High
Deloitte	Auditing, business consulting, taxation, restructuring, advisory, due diligence, forensic audits	High
KPMG (Klynveld Peat Marwick Goerdeler)	Audit, tax, advisory, risk management, M&A, digital transformation, cybersecurity	High
EY (Ernst & Young)	Auditing, business consulting, taxation, transaction advisory, M&A, valuations, forensic audits, risk management	High
BDO (Binder Dijker Otte)	Audit & assurance, tax (corporate, VAT, international), advisory, business outsourcing, risk advisory, forensic audit services, cybersecurity, M&A	Moderate to High
Crowe	High-quality audit and assurance services	Moderate to High
Baker Tilly	Assurance & audit, tax advisory, consulting, risk advisory, forensic accounting, valuation services, outsourced services, corporate restructuring	Moderate to High
Grant Thornton	Audit & assurance (statutory audits, limited reviews), tax, advisory, transaction advisory, business consulting, risk services, forensic	Moderate to High
RSM	Audit & assurance, tax (corporate, VAT), accounting & payroll, risk management, internal audit, business advisory, outsourcing, consulting	Moderate to High

Though audit prices in Sharjah may be cost-effective for businesses, a lot of companies also evaluate audit firms across other States of the UAE depending on their size, geographical presence, and sector.

If you are comparing firms across the country and want to see broader market comparison, please refer to our guide on top financial accounting firms in Dubai, where we analyze leading firms, their fee levels, specializations, contact details, expertise, etc.

You may also refer to our guide on audit firms in Abu Dhabi to discover which audit firms are leading the Abu Dhabi market, their pricing, staff expertise and qualifications, client types, etc.

Contact Vertix Auditing

We provide auditing services that are customized according to your needs. As an auditing service provider, we support mainland companies, small and medium-sized enterprises (SME), industrial entities, and free zone companies. Additionally, we can assist our Sharjah-based clients with their larger UAE needs by providing them with VAT, corporate tax consultancy, accounting services, business consulting services, ERP implementation services, etc.

Frequently Asked Questions (FAQs)

1 – Do companies in Sharjah require an audit?

Audit requirements are determined by whether the business is in the mainland, or the free zones, as well as the reason the financials were prepared. Typically, all mainland businesses have to hire a licensed auditor to assess their financials. In contrast, many free zone businesses will need to perform audits in order to renew their licenses, comply with corporate tax obligations, obtain funding from banks, investors etc.

2 – How long does an audit take in Sharjah?

For smaller businesses, it typically takes 1 to 2 weeks, and for large companies it may take between 4 to 6 weeks after the company has provided its financial records and supporting documents. Depending upon complexity, some audits could take longer time. The length of time is dependent upon how well organized and accurate your financial records are as well as how promptly you respond to their questions.

3 – What documents are usually required for audit in Sharjah?

Documents that auditors typically require for an audit of your company may include a trial balance; a ledger or journals; bank statements; invoices; VAT returns (if applicable); contracts; and other supporting schedules. Auditors will also ask for fixed asset registers; payroll data and information about inventory levels; any related party transactions, and income tax filings.

4 – Do small businesses in Sharjah need audited financial statements?

Audited financial statements are required by law and must be completed. Financial audits can also assist in obtaining bank financing, handling shareholders, tax preparation, etc. Moreover, audits increase your credibility and aid in maintaining financial discipline within business operations.

5 – Can an audit help with bank financing?

Yes. In most cases banks will either require or heavily prefer audited financial reports when making funding decisions; including loans or working capital and/or restructuring. A “clean” audit report from a respectable firm lessens the risk to the bank and can make the loan terms better or even shorten the time it takes to approve the loan.

6 – What makes a good audit firm in Sharjah?

Any top auditing company in Sharjah must have local knowledge of the regulatory environment. It must also provide you with timely service, including quality assurance and control, and offer insights into issues specific to your industry. In addition, the audit company must be licensed by MOE and have a good understanding of UAE laws, regulations and customs.

7 – Which industries most commonly need an audit?

Auditing for trading, manufacturing, construction, logistics, property/real-estate, education, healthcare and/or group entities is common. All these sectors have either transactional complexity, an element of regulatory supervision, or an element of multi-stakeholder involvement.

8 – Should I choose an audit firm in Sharjah only, or a UAE-wide firm?

Many businesses prefer a single UAE wide audit practice which would provide one set of auditors working on their behalf throughout the UAE, facilitating consistency in services and providing better coordination for companies that operate within more than one Emirate or who have group entities.