Purpose of External Audit:
An external audit is done with the intention of checking if the accounting records of your company provides a true picture of the finances and that all records are maintained following the prescribed rules, laws and standards.
The main responsibilities of an external auditor are planning and carrying out the audit, conducting research to gather evidence, looking at accounts and records, analysing financial reports and assessing possible risks, preparing a report and making recommendations.
RERA audits are independent audits carried out by developers registered with the government agency that govern real estate rules and regulations, Real Estate Regulatory Agency (RERA). RERA requires developers to submit an annual audit report for all completed projects.
In RERA audits, we critically analyse the project’s completion status; conduct financial, operational and compliance audits and conduct internal audits to help developers understand and assess their financial health and spot risks early on.
RERA considers each and every owner of a property in Dubai to be part of the Owners Association/Jointly Owned Property (JOP). The Association/JOP requires owners to maintain the units of property they own by themselves. The law that governs this industry has recently been changed and the new law no. 6 of 2019 has replaced the previous law no. 27 of 2007 concerning the ownership of Jointly Owned Properties in the Emirate of Dubai.
Audit of Owners Association/JOP and master communities is an audit of service charges received from the members of associations and communities. The said charges include an Owners Association charge which is related to maintenance of assets that are commonly used by two or more units such as boilers, chillers, lifts, corridors, etc. In addition, a master community charge is also included in the above mentioned service charges for usage and maintenance of assets commonly used by the whole community, for example, tunnels, street lights, trash cans, etc.
Initially, the service charges are based on budgeted costs and in subsequent years these charges are based on previous year financial results. These facility management companies or teams provide maintenance and charge each owner a specific price based on a predefined rate per square foot approved by the Regulator.
We carry out stringent checks while performing audit of accounts of Owners Association/JOP to ensure the interests and the investments of the owners are secured and any irregularities are reported to the members. We not only examine and check expenses but we also audit receipts from the Association owners’/community members. We help the users of the financial statements in having a comprehensive look at the financial statements in addition to making them as transparent as possible.